Investing in Initial Public Offerings (IPOs) can be an exciting venture for both seasoned investors and newcomers to the stock market. It provides an opportunity to participate in the early stages of a company's journey into the public market. However, navigating the world of IPOs requires careful consideration and strategic planning to maximize returns while mitigating risks. Understanding IPOs: Basics and Fundamentals What is an IPO? An IPO, or Initial Public Offering, is the process by which a privately-held company offers shares of its stock to the public for the first time. It marks the transition from a privately-owned entity to a publicly-traded company. How do IPOs work? In an IPO, the company hires investment banks to underwrite the offering and help determine the initial offering price. The shares are then sold to institutional investors and the general public through a regulated stock exchange. Why do companies go public? Companies go public for various