IPO – Initial Public Offering What it is: The first time a private company offers its shares to the public and becomes listed on a stock exchange. Purpose: Usually done to raise capital for growth, pay off debt, or allow early investors/founders to cash out some of their holdings. Example: When Zomato launched its IPO in 2021, it became a publicly traded company for the first time. Think of IPO as: A company entering the stock market for the first time. FPO – Follow-on Public Offering What it is: A company that's already publicly listed issues more shares to the public. Purpose: To raise additional capital for expansion, reducing debt, or other strategic goals. Types: Dilutive FPO: New shares are issued, increasing the total share count. Non-dilutive FPO: Existing major shareholders sell part of their holdings, so no new shares are created. Think of FPO as: A company going back to the market for more funds after its IPO.