The Initial Public Offering or IPO is an investment scheme wherein private start-ups distribute shares to the public, usually in the form of equities. IPO stocks allow the public sector an ownership in the company’s profits, while also providing strong financial backing to incipient private firms. A lot of investors are skeptical about investing in IPO due to the risks involved. But here are some benefits you may want to consider: Possibility of high returns as IPO is a stock investment. Suitable for long-term goals such as post-retirement plans and buying property. Minimal investment rates as small start-ups usually offer huge discounts. Transparencies in dealings, as companies are required to provide extensive details about themselves in their prospectus. Good for beginner investors due to low investment rates.