Video narration
When you buy an IPO, where does your money go? You buy coffee from a familiar chain; a share makes you a tiny owner, not just a customer. An IPO is a company's first sale of shares to the public. Companies and existing owners can both sell shares; here, we're following new shares. Imagine a fictional coffee chain selling new shares to fund more shops. This example is fictional, not live market data or investment advice. Here's the key: new-share money goes to the company, before costs. After trading begins, buying from another investor pays that seller, not the company. If the business grows, your share may gain value. It can also fall; an IPO is no sure win. So, IPO money can build the business-but later purchases pay an investor. Consider it only if the risk suits you.