Financial Instruments (IPO, Bonds, SPO)

Financial instruments: IPO (Initial Public Offering) is the initial public placement of a company's shares on the stock market, when the company sells its shares to the general public for the first time to raise capital. SPO (Secondary Public Offering) is the secondary public placement of shares, when a company already has a listing on the exchange and issues additional shares to attract new investments or to sell already issued shares. Bonds are debt securities issued by companies or the government to raise borrowed funds. The buyer of a bond essentially lends money to the issuer and receives interest (a coupon) and the return of the nominal value at the end of the term.