- This topic has 472 replies, 459 voices, and was last updated 2 years, 7 months ago by
.
-
Posts
-
IPO MEANS INITIAL PUBLIC OFFERING.WHEN THE COMPANY COLLECT THE CAPITAL FROM THE PUBLIC FIRST TIME THROUGH PRIMARY MARKET IS CALLED IPO.
PROCESS OF IPO: EARLIER THE PROCESS IS LIKE TO PURCHASE APPLICATION AND GET THE SHARES BUT NOWDAYS IT IS DONE THROUGH ONLINE.IPO is Initial Public Offering, the first time the company raise capital in primary market through IPO
Process of applying for IPO and considering to invest in the company,
1) Fill the application form issued by the company which will be available with broker / investment consultant. Now-a-days available online.
2) Remit the amount to the bank that is designated as the collecting center in the application form.
3) If we have a Demat account, we can apply IPO through Demat account which is a simple process.
4) In fixed price issue you know the price at which stocks would be allotted to you and payment is made at the time of applying.
5) In book building process you know a price range at which stocks would be given to you (eg. 300 -350) and not the exact price.
When a company wants to acquire more capital, it divides the capital into equity and sells it to the share holders by a face value. This is called as the Initial Public offering of the company, and it is a only one and first time offering of the company. After that, the face value of share may increase or decrease during the future period of time.
IPO full form is Initial Public Offer.
Generally every company needs funds for starting the company.A Public company only can raise the funds through issue of IPO i.e prospectus in a business daily asking public to invest in their company
- You must be logged in to reply to this topic.
