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What is the difference between a secondary offering and IPO?

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What is the difference between a secondary offering and IPO?
posted Jul 17, 2017 by Kavana Gowda

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A secondary offering is the issuance of new stock from a company that has already made its initial public offering. Companies usually issue a secondary offering to raise capital for growth.

IPO:- An initial public offering (IPO) is the first time that the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by large privately owned companies looking to become publicly traded. In an IPO, the issuer obtains the assistance of an underwriting firm, which helps determine what type of security to issue, the best offering price, the amount of shares to be issued and the time to bring it to market.

answer Jul 18, 2017 by Shubham Rajput
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