What is the difference between an IPO Initial Public Offering and a direct listing?

What is the difference between an IPO and a secondary offering Introduction: The World of Public Offerings Hello, and welcome to our video on IPOs and secondary offerings. In the dynamic world of finance, these events play a crucial role in shaping a company's trajectory. Today, we'll delve into the nuances of these offerings, highlighting their unique characteristics and significance. IPO: The Gateway to the Public Market An IPO, or initial public offering, is the first time a company issues shares to the public. It marks a significant transition from being privately held to becoming a publicly traded entity. Typically, companies opt for an IPO when they seek to raise substantial capital, enhance their brand visibility, or provide an exit opportunity for early investors or founders. The IPO Process: A Multifaceted Journey Embarking on an IPO involves a series of intricate steps. Firstly, the company engages an investment bank or underwriter, who assists in structuring the offering. Extensive due diligence is conducted, involving financial audits, legal compliance checks, and market analysis. The company then files a registration statement with the relevant regulatory body, such as the SEC in the United States. This statement, known as the prospectus, provides detailed information about the company's operations, financials, and risks. It serves as a crucial document for potential investors to evaluate the offering. The IPO Roadshow: Building Investor Interest