The full form of IPO is Initial Public Offering. It is a process through which a private company can go public. Under IPO, a company offers to sell its stocks to the public. Several old companies can go public in order to get listed in the stock exchange of that particular company. Several companies offer IPO in order to generate the required capital which would further help the company to expand its business. The capital generated through this process can help a company to fund development, research and market related programs in order to pay its debts. Once a company decides to go public, it is not obliged to repay the capital amount to its investors.