What is the purpose of IPO (initial public offerings)?
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An IPO is done to sell a private company to the public. Before the IPO, the company is owned by a few people. In order to trade stock on an exchange, the company must be taken public in accordance with SEC (Securities and Exchange Commission) regulations. Once the IPO takes place, the few people who used to own the company have sold it to various public stockholders.
Investment bankers are the people who take companies through the IPO process.
to sell companies’ equity to the open market.
you can call this the primary market as the investors purchase the equity directly from the companies.www.stock-investment-made-easy.com/how-stock-market-works.html
both retail investors and institutional investors can participate.