An Initial Public Offering or IPO is when equity shares of a company are offered to the public on the open market i.e. the stock market for the first time. The company going public raises capital and funds by trading IPO shares. During the IPO trading, a fraction of shares are reserved for different types of investors including Individual investors, Qualified Institutional Buyers and High Net-worth Individuals. The IPO is either a Fixed Price Issue or Book Built Issue.