IPO
In the 1600s, the Dutch East India company employed hundreds of ships to trade gold,porcelain,spices and silks around the globe. But running these operations wasn't cheap. So in order to raise funds, they started selling shares of profits to private citizens who could invest money. In this by default way this became the first company to launch IPO or initial public offering. Well IPO in simple terms is a process by which private company first issues and sells its shares to the public in order to raise funds from the public investors. This process transformed the private into a public company. The investors who purchase these become equity shareholders or partial owners of the company. It helps the company in expansion and diversification and boosts its growth to the next level. It makes capital accessible and in turn puts the company in front of public scrutiny which results in greater transparency and credibility. It also makes it less liable towards debts which are more riskier. ...