Initial Public Offering (IPO) – Learn The Basics & Start Investing

Initial Public Offering (IPO) – Learn The Basics & Start Investing

What is an IPO?


An IPO (Initial Public Offering), is the first sale of shares by a company to the general public. A company can generally raise money by issuing either debt or equity. If the company has never issued equity shares to the public earlier & it issuing it for the first time, it's known as an IPO. Like the name says Initial, it is the beginning of public issue. A company’s process of bringing an IPO is also known as going public. An IPO is the first time the owners of the company give up part of that ownership to stockholders. These shares being issued by the company are subscribed by the general public & later the shares get listed at an stock exchange for trading. If an company which is already listed on NSE or BSE or other recognized exchange comes with a public issue at a later stage, it is known as FPO (Follow on Public Offer). Raghunandan Money is one of the leading brokers in primary market segment & brings you all the IPOs and FPOs which come in the market.

How can you apply for an IPO?


Raghunandan Money facilitates applying for IPOs in Online & Offline format. If you wish to apply Online, your IPO investment is done in just a few clicks. You can do so by using your Online Trading Account with Raghunandan Money. Funds for the IPO application is debited directly from your trading account with us and hence it is absolutely paperless mode of investing. If you wish t apply for an IPO offline, you need to contact our office near to you or give us a call at our customer care. We will arrange the physical form & brochure for you to facilitate investing in IPOs of your choice. While doing the Offline application, we will also require your PAN Card copy & the cheque for the investment amount.
If you already have a share trading account with us, you can also apply for an IPO on phone as well. Whatever way you opt for Online, Offline or IPO on Phone, with Raghunandan Money, buying an IPO is a few seconds job and our advisors bring you an in-depth research paper on IPO, rating on the IPO to help you pick the right one.


What are the types of an IPO?


Primarily , there are 2 types of IPO issues : Fixed Price Issue and Book Building Issue.
  • Fixed Price Issue – The issuing company determines a fixed price for the issue. So when the IPO is floated, the price of the IPO is pre-determined.
  • Book Building Issue - The issuing company ‘discovers’ its price using the book building process which is based on the demand or applications received from clients at various price levels. In such issue, the price of allotment is determined after the IPO subscription closes

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