Question 36 of 44
Q.Initial Public Offer and Further Public Offer
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2026Subjective· 4mImportance★★★★★
82% · 36/44 Questions
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Start your 14-day free trial to unlock the full solution →An IPO is a company's first public offer of shares that leads to its listing, whereas an FPO is a fresh public offer made later by an already-listed company.
IPO and FPO are both methods of a public issue of shares under which a company invites the general public to subscribe to its shares. The difference lies mainly in the timing and the listing status of the company.
| Point | Initial Public Offer (IPO) | Further Public Offer (FPO) |
|---|---|---|
| Meaning | The first offer of shares by a company to the public. | A subsequent public offer of shares by a company already listed. |
| Listing status | Made by an unlisted company; leads to listing. | Made by an already-listed company. |
| Purpose | To raise capital for the first time and get listed. | To raise additional capital after listing. |
| Risk to investors | Comparatively higher, as there is no market track record. | Comparatively lower, as market price and performance are known. |
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