New Delhi, July 1 -- Initial public offerings (IPOs) often attract investor interest, offering a rare chance to get in early on emerging businesses. For companies, an IPO is a vital way to raise capital, while allowing promoters to unlock the value of their investments.

But once a business is listed, it has many ways to raise funds, and a follow-on public offer is one such among them. But many investors remain confused between an IPO and an FPO. Let's simplify.

The initial public offering and follow-on public offering are the two most common ways for a company to raise funds from the stock market. An initial public offering is when a business generates cash for the first time by issuing shares to the public. On the other hand, FPO refer...