- This topic has 472 replies, 459 voices, and was last updated 2 years, 8 months ago by
.
-
Posts
-
When the company is in need of very large capital it offers shares to the public and raise funds from them.It is the Initial Public Offer(IPO).
IPO can be acquired only as lots( ‘n’ no. of shares).A price band will be given.Those who quoted with high price will get high priority of acquiring shares.
If the IPO gets oversubscribed,the lots will be alloted in such a way that everyone(who quoted for high price) would get lot in some ratio.
Initial Public Offer. When a company wants to raise money for its capital requirement, then it has to invite public for investing money to their company through some mass advertisement. Such process is known as IPO.
When the public issue of shares is happening for the first time in the company then it is called as IPO (Initial Public Offering).
First, the company will register in the primary market with the approval of SEBI and it will advertise about their business to the public; then the interested individuals will apply to acquire shares of the company.
When a well based compnay is looking for a very high investment, it turn to public to investment in the company in return for a percent age of the business.
The company will first have to register itself with SEBI, promote its intention of going public and market it to potential investors.
when a company issues its shares for the first time for the public to subscribe, it is said to be initial public offering.
The investor should have a demat account with online trading access. Go through the company’s prospectus and decide on the number of shares to be applied for and application can be made online. If in case the shares are not allotted, the amount paid as application money will be refunded.
- You must be logged in to reply to this topic.
