{"id":4519,"date":"2024-04-12T12:52:11","date_gmt":"2024-04-12T07:22:11","guid":{"rendered":"https:\/\/www.spidersoftwareindia.com\/blog\/?p=4519"},"modified":"2024-04-12T12:52:14","modified_gmt":"2024-04-12T07:22:14","slug":"difference-between-fpo-ipo","status":"publish","type":"post","link":"https:\/\/www.spidersoftwareindia.com\/blog\/difference-between-fpo-ipo\/","title":{"rendered":"Difference Between FPO &amp; IPO:"},"content":{"rendered":"\n<p>An IPO and FPO are two fundamental methods through which a company can raise capital from the equity market.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><strong>What is an IPO?<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"654\" height=\"381\" src=\"https:\/\/www.spidersoftwareindia.com\/blog\/wp-content\/uploads\/2024\/04\/All-you-need-to-know-about-investing-in-an-IPO-FB-1200x700-compressed-removebg-preview.png\" alt=\"This image is about IPO \" class=\"wp-image-4522\" style=\"width:372px;height:auto\" srcset=\"https:\/\/www.spidersoftwareindia.com\/blog\/wp-content\/uploads\/2024\/04\/All-you-need-to-know-about-investing-in-an-IPO-FB-1200x700-compressed-removebg-preview.png 654w, https:\/\/www.spidersoftwareindia.com\/blog\/wp-content\/uploads\/2024\/04\/All-you-need-to-know-about-investing-in-an-IPO-FB-1200x700-compressed-removebg-preview-300x175.png 300w\" sizes=\"(max-width: 654px) 100vw, 654px\" \/><\/figure><\/div>\n\n\n<p><br>An initial public offering, or IPO, is when a company sells its shares to the general public for the first time and prepares to be listed on a stock exchange.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><strong>What is FPO?<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"511\" height=\"488\" src=\"https:\/\/www.spidersoftwareindia.com\/blog\/wp-content\/uploads\/2024\/04\/1000_F_372918439_CwFQOuNZMdRimg7tEwcr9fD62fgZQYUT-removebg-preview-1.png\" alt=\"This image is about FPO\" class=\"wp-image-4524\" style=\"width:265px;height:auto\" srcset=\"https:\/\/www.spidersoftwareindia.com\/blog\/wp-content\/uploads\/2024\/04\/1000_F_372918439_CwFQOuNZMdRimg7tEwcr9fD62fgZQYUT-removebg-preview-1.png 511w, https:\/\/www.spidersoftwareindia.com\/blog\/wp-content\/uploads\/2024\/04\/1000_F_372918439_CwFQOuNZMdRimg7tEwcr9fD62fgZQYUT-removebg-preview-1-300x286.png 300w\" sizes=\"(max-width: 511px) 100vw, 511px\" \/><\/figure><\/div>\n\n\n<p><br>An FPO, or Follow-on Public Offer, is when a company that is already listed on a stock exchange issues more shares.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><strong>Difference between FPO &amp; IPO:<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"705\" height=\"354\" src=\"https:\/\/www.spidersoftwareindia.com\/blog\/wp-content\/uploads\/2024\/04\/IPO-and-FPO-removebg-preview.png\" alt=\"This picture is about difference between IPO and FPO\" class=\"wp-image-4525\" style=\"width:408px;height:auto\" srcset=\"https:\/\/www.spidersoftwareindia.com\/blog\/wp-content\/uploads\/2024\/04\/IPO-and-FPO-removebg-preview.png 705w, https:\/\/www.spidersoftwareindia.com\/blog\/wp-content\/uploads\/2024\/04\/IPO-and-FPO-removebg-preview-300x151.png 300w\" sizes=\"(max-width: 705px) 100vw, 705px\" \/><\/figure><\/div>\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Sr.no<\/strong><\/td><td><strong>Particulars<\/strong><\/td><td><strong>IPO<\/strong><\/td><td><strong>FPO<\/strong><\/td><\/tr><tr><td>&nbsp;1.<\/td><td>Meaning<\/td><td>A company&#8217;s first time selling shares to the public.<\/td><td>A company that&#8217;s already public sells more shares.<\/td><\/tr><tr><td>&nbsp;2.<\/td><td>Price<\/td><td>Set price or a range before the sale.<\/td><td>Based on current market prices and can vary if more or fewer shares are offered.<\/td><\/tr><tr><td>&nbsp;3.<\/td><td>Share Capital<\/td><td>Increases as new shares are sold to the public for the first time.<\/td><td>Increases with a dilutive FPO; remains the same with a non-dilutive FPO. &nbsp;<\/td><\/tr><tr><td>&nbsp;4.<\/td><td>Cost<\/td><td>Generally more expensive.<\/td><td>Typically cheaper because the company&#8217;s value may be spread over more shares.<\/td><\/tr><tr><td>&nbsp;5.<\/td><td>Risk<\/td><td>More risky.<\/td><td>Less risky then IPO.<\/td><\/tr><tr><td>&nbsp;6.<\/td><td>Company status<\/td><td>Not listed on the stock market.<\/td><td>Already listed on the stock market.<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">This table will help you to know the difference between IPO and FPO. <\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center\"><strong>Conclusion:<\/strong><\/h2>\n\n\n\n<p>When deciding whether to invest in an IPO (Initial Public Offering) or an FPO (Follow-on Public Offering), it&#8217;s important to consider your risk tolerance and investment goals. Investing in an IPO can be riskier because there&#8217;s often less information available about the company. This means you need to do more research compared to investing in an FPO, which is generally considered safer for individuals and new investors.<\/p>\n\n\n\n<p>If you&#8217;re a long-term investor with a high-risk tolerance and believe in the company&#8217;s potential, an IPO might be worth considering. Remember that IPOs can offer higher returns if the company performs well, but they also come with more uncertainties.<\/p>\n\n\n\n<p>Ultimately, you should assess your investment profile before making a decision, taking into account both the risks and potential returns.<\/p>\n\n\n\n<p>Click here to learn the <a href=\"https:\/\/www.spidersoftwareindia.com\/blog\/difference-between-cryptocurrencies-and-stocks\/\">Difference Between Cryptocurrencies and Stocks<\/a>.<\/p>\n\n\n\n<p>Join our upcoming free Webinar on <a href=\"https:\/\/attendee.gotowebinar.com\/register\/4762779145624641632\">Understanding Price Action Techniques: A Guide to Effective Trading<\/a><\/p>\n\n\n\n<p>If you&#8217;d like to know how we analyze the market and provide accurate levels every day. then click on the Free Demo button below and change your trading life for good. 5X returns are possible in options trading If you have Spider Software in your trading system.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-1 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link has-white-color has-vivid-cyan-blue-background-color has-text-color has-background wp-element-button\" href=\"https:\/\/spidersoftwareindia.com\/contact-us.php\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Free Demo<\/strong><\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link has-vivid-green-cyan-color has-text-color wp-element-button\" href=\"https:\/\/rzp.io\/l\/b8kiANSCW\" target=\"_blank\" rel=\"noreferrer noopener\">Buy Now<\/a><\/div>\n<\/div>\n\n\n\n<pre class=\"wp-block-code has-small-font-size\"><code>Disclaimer: The information provided in this Blog is for educational purposes only and should not be construed as financial advice. Trading in the stock market involves a significant level of risk and can result in both profits and losses. Spider Software &amp; Team does not guarantee any specific outcome or profit from the use of the information provided in this Blog. It is the sole responsibility of the viewer to evaluate their own financial situation and to make their own decisions regarding any investments or trading strategies based on their individual financial goals, risk tolerance, and investment objectives. Spider Software &amp; Team shall not be liable for any loss or damage, including without limitation any indirect, special, incidental or consequential loss or damage, arising from or in connection with the use of this blog or any information contained herein.<\/code><\/pre>\n<div class=\"pvc_clear\"><\/div><p id=\"pvc_stats_4519\" class=\"pvc_stats all  \" data-element-id=\"4519\" style=\"\"><i class=\"pvc-stats-icon large\" aria-hidden=\"true\"><svg aria-hidden=\"true\" focusable=\"false\" data-prefix=\"far\" data-icon=\"chart-bar\" role=\"img\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\" class=\"svg-inline--fa fa-chart-bar fa-w-16 fa-2x\"><path fill=\"currentColor\" d=\"M396.8 352h22.4c6.4 0 12.8-6.4 12.8-12.8V108.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v230.4c0 6.4 6.4 12.8 12.8 12.8zm-192 0h22.4c6.4 0 12.8-6.4 12.8-12.8V140.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v198.4c0 6.4 6.4 12.8 12.8 12.8zm96 0h22.4c6.4 0 12.8-6.4 12.8-12.8V204.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v134.4c0 6.4 6.4 12.8 12.8 12.8zM496 400H48V80c0-8.84-7.16-16-16-16H16C7.16 64 0 71.16 0 80v336c0 17.67 14.33 32 32 32h464c8.84 0 16-7.16 16-16v-16c0-8.84-7.16-16-16-16zm-387.2-48h22.4c6.4 0 12.8-6.4 12.8-12.8v-70.4c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v70.4c0 6.4 6.4 12.8 12.8 12.8z\" class=\"\"><\/path><\/svg><\/i> <img loading=\"lazy\" decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"https:\/\/www.spidersoftwareindia.com\/blog\/wp-content\/plugins\/page-views-count\/ajax-loader-2x.gif\" border=0 \/><\/p><div class=\"pvc_clear\"><\/div>","protected":false},"excerpt":{"rendered":"<p>An IPO and FPO are two fundamental methods through which a company can raise capital from the equity market.<\/p>\n<div class=\"pvc_clear\"><\/div>\n<p id=\"pvc_stats_4519\" class=\"pvc_stats all  \" data-element-id=\"4519\" style=\"\"><i class=\"pvc-stats-icon large\" aria-hidden=\"true\"><svg aria-hidden=\"true\" focusable=\"false\" data-prefix=\"far\" data-icon=\"chart-bar\" role=\"img\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\" class=\"svg-inline--fa fa-chart-bar fa-w-16 fa-2x\"><path fill=\"currentColor\" d=\"M396.8 352h22.4c6.4 0 12.8-6.4 12.8-12.8V108.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v230.4c0 6.4 6.4 12.8 12.8 12.8zm-192 0h22.4c6.4 0 12.8-6.4 12.8-12.8V140.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v198.4c0 6.4 6.4 12.8 12.8 12.8zm96 0h22.4c6.4 0 12.8-6.4 12.8-12.8V204.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v134.4c0 6.4 6.4 12.8 12.8 12.8zM496 400H48V80c0-8.84-7.16-16-16-16H16C7.16 64 0 71.16 0 80v336c0 17.67 14.33 32 32 32h464c8.84 0 16-7.16 16-16v-16c0-8.84-7.16-16-16-16zm-387.2-48h22.4c6.4 0 12.8-6.4 12.8-12.8v-70.4c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v70.4c0 6.4 6.4 12.8 12.8 12.8z\" class=\"\"><\/path><\/svg><\/i> <img loading=\"lazy\" decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"https:\/\/www.spidersoftwareindia.com\/blog\/wp-content\/plugins\/page-views-count\/ajax-loader-2x.gif\" border=0 \/><\/p>\n<div class=\"pvc_clear\"><\/div>\n","protected":false},"author":1,"featured_media":4529,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[300,17,290,28],"tags":[26,5,301,252,30,9,10,7],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Difference Between FPO &amp; 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