This stock exchange serves two very significant purposes. The first is to give assets to corporations that they will take to support and grow their jobs. If the corporation issues one million shares of product that initially deliver for $ 10 a share, So this allows the company with $ 10 million of assets that it will have to develop its business (minus whatever fees the company gives for the investment bank to accomplish the stock offering). By providing product shares instead of borrowing the assets required for expansion, the company avoids receiving debt and giving interest charges on the debt.
Another benefit of stock trading is that it can be used as a way to raise money for projects or other ventures. In addition, when companies are able to raise funds from investors who want a particular project to succeed, they can use the capital raised from these investments to fund the further development of their business. If the company does not achieve its goal, it can sell the stock to an investor who wants a return on investment.
This method of raising money is called. About a decade or so ago there was a big push towards internet marketing and then again roughly five years ago towards social media marketing. That’s reasonable given how the internet and social media have changed how people connect and interact with one another. But I caution against solely using the internet and social media for marketing and promoting one’s work.
What Is IPO (Initial Public Offering)?
Ipo is the short version that any company wants to raise the funds or make more profits or for anything else reason could be anything. They take money from many investors including people like me or you or any other company or other entity. The company comes to with the initial public offering.
Where the company gives share for the first time to the public is called IPO. Then after the second time when the company gives a share again then. it’s called Further public offering (FPO) also called follow-up public offer.
Share Market or IPO market is different.
The IPO market is called the primary market
has a minimum no. of lots where users can buy limited shares. Like There are reserved shares for many categories –
- QIB – Qualified institutional buyers – They are big investors who buy a large number of shares. Like Bank.
- HNI – High Networth Investors – Those are who bid above 2 Lakh. Shares are reserved for them as well.
- RI – Retail Investors – It’s Public- The rest of the share will be spread in public in a limited amount. Called IPO
There is a lot system. 1 lot per person. For example, In Every lot, there are 10 shares and the company publishes 1000 shares then the total lot is 100. thousands of people apply for it. It’s called oversubscription. Then only 100 People will get the IOP. This IPO is given by a lucky draw. and if people don’t buy the full share of the company means let’s say 70% is sold but 30% remaining is called under subscription.
The share market is called the secondary market.
You can buy any company share in an instant with the secondary market but not IPO. Ipo has a certain time limit to buy shares many of the companies release their IPO for 3 days or some of the companies open it for 10 days or more.
How to and where to Sell IPO?
Well After you buy IPO then after 7 days the company will be listed on the stock exchange where you can buy sell or buy your stock at any time no limitation is required.
I have mentioned some of the platforms where you can do all kinds of things buy IPO or sell IPO or buy shares.
What App Is Best To Invest In IPO?
Here, I’ll show you the best platform on how to invest in IPO or use this app. am also going to show you how to apply for IPO.
These are some of the platforms I personally use. you can use site or application
1. Zerodha By Kite IPO Application –
In Order to buy IPO open, the app makes an account. Then go to your profile > go to consol > click on IPO > Current IPO.
In this, you will see all the current Ipos are listed. Where you can also see all kinds of other information LOT size, price bend, or Start date or end date. You can but the Share with UPI Make sure you use online payment like UPI google pay, Phone Pay, or Net banking.
You will see the bid option you need to click on that no you can bid your values and buy the IPO.
2. UpStox –
You can use an app or site to buy IPO or sell any stock. Where you need to create an account with valid id proof. First Install the app or go to site the to make an account.
Click on the left menu > the First option apply for IPO > you will see all ongoing IPO with all the details. Now at the bottom, you will see a place abid click on that > Now you will be asked to enter your UPI Id. Add quantity and check on cut-off price. Then place your order then open your UPI id where you will be asked to pay a certain amount to buy this IPO Pay it the payment will be automatically confirmed.
ICICI Bank IPO –
Moreover, you can also buy IOP on the app of ICICI bank. Their ob the left menu you can see the IPO option there you can have it. Moreover, The process is all the same.
Net – Banking –
You can Buy Or Sell IPO on any net banking for example if you want to buy the IPO on SBI. simple login then goes to E-services there you will see Demat services. ASBA – then click on IPO Equity/IPO and open the go you can select the Ipo and see all details.
Fill up all the details and you are good to go.