IPO
The initial public offering (IPO) is a process followed by joint stock companies in raising capital through issuing new shares of stock to the general public. It can be made through a fixed price method, a book building method or a combination of both. The fixed price method is being commonly used in IPO for many years. But, recently the book-building method has gained popularity in developed countries and has been making inroad into emerging markets as well.
After IPO, the company's shares are traded in an open market. Those shares can be further sold by investors through secondary market trading.