The Impact of Interest Rates on IPO Activity
Interest rates significantly influence IPO activity by affecting capital costs, investor sentiment, and market conditions. This article explores how changing interest rates shape the IPO landscape, providing valuable insights for investors and companies considering going public.
Understanding Interest Rates and Their Economic Role
Interest rates represent the cost of borrowing and are set by central banks to regulate inflation and economic growth. Low interest rates stimulate borrowing and investment, while high rates increase capital costs, potentially slowing economic expansion.