what is an IPO?

I also want to know about IPO. Today i got a sms from my bank to apply for IPO.But i dont know about it. There says i will get interest from it during the process.But for what?How? Dont know.Need clear views on this.

ipo mean initial public offering . when an uunlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for first time to the public. * mercent bank disidered * application underwriting * price fix to marchant bank.that's all........ by r.karthika

Initial Public Offering ( IPO ) is the first sale of stock by a private company to public.IPOs are issued to raise capital for expanstion.IPO can be a risky investment as the investor do not have any idea about how stock will trade on first day.There is no historical data available.Large IPOs are underwritten by syndicate of investment banks.