What is IPO ?

 What is IPO 

IPO means Initial public offering. Suppose company A is new company. This company is only work in a city. But company performance is very good. So company clients are increase very fastly. And this client belong to other city. Therefore company  need expand our business in other city. For this expansion company A need more office , more factory for more produces products. They have two options for collating funds. 

1 Bank Loan
2 IPO 

Bank loan is very risky for company features.  We see many good Company today goto bankruptcy . First a fall bank not give the loan for new company. And sometimes bank give the loan. But in fucture from short problems company not able to repay loan,  EMI ,etcetera. So Bank loan is not good option for new company . So in this case company have only one option is IPO. 


Sometimes many company have loan, pending payment. So company need money for repay loan . Pay the payment. But this company performance is best but company need repay loan for there maximum EMI. This company are in profit but they are not making maximum profit. Therefore he need funds .

Second option is IPO means Initial public offering. 
Suppose company A start you and you two friends. You invest 20 k. Also your friend invest 20 k. So after your hard work
You get more clients. So you have to expand your business. So you need funds but you not able to loan. In this case company collects funds from people, investors. They are call IPO. 

For listing in share market company need to submit her private documents. 
For example past transaction, bord members information means CEO,  founder, co founder,  manager, etcetera .
Company submit her feature plan . Why he need funds.  Where he use the funds,  how many funds they are using. Etcetera. They all information submit to share market regulator. means in India share market regulator is SEBI . Market regulator check This information is right or wrong. 
This all company information is giving to you for company analysis, understanding company performance, company bord members. 

IPO is open for  3 to 10 days only. IPO listed in primary share market. In primary share market selling the share. Here share selling price go-to company. 
For example 
Company A make the IPO on 10$ fix
He sold 100000 shares on price 10$ 
So company get 1000000$.
In IPO you not Abel to by one share . You have the buy shares in the lot . Company make 50 share lot. So you have to by 50 share. Ya 50 , 100 , 150, ..... .
You have to by only ten shares so you can by 50 share and after sometime you sell other 40 share.  But you not buy only ten shares in this case.


How company allow the IPO share price 

They are two options 
1 fix price shares 
2 book building price shares 

1 fix price shares 
Company bord management decided a fix price for the shares. You have to by the shares on this fix price. 
For example 
Company A allow the IPO in share market. Company management decided 100 $ per share price. Personal B is buying the shares on price 100.

2 book building price shares 

In this case company set a price band
Company issue price band with market regulators 
We see In example 
Company A allow the shares on price band. Company set a Price band 95$ - 99$. In price band lowest price 95 $ is called floor price.  And highest price 99 $ is called cap price . In the cap price ( highest price ) and floor price( lowest price ) differences is 20 % maximum. In Company A price band differences is only 1.3 % . You select a best price submit the bid . IPO mostly open for 3 days. There is a allotments process.  We can discuss on another  blog . After 3 day check the application and allow the shares for buyers. Sometimes You not get the share. 

IPO is  best option for investment ?
Yes, IPO is best option for investment.
IPO investment is best for long-term investment. So you have hold the shares for 2 - 3 years for best return. You hold the shares for long-term so you have to investment in IPO. 

But you have study the IPO carfully some points check to a right money investment. 

This all information you find on your contery market regulator website. Example. SEBI for India.  you find on IPO company official website. 

You go on this link 👉 contact from and 
write in comment IPO Company name and submit it. With In 12 hours we send all information about Company. 

1. Risk factors 
2. Past financial statements 
3. Feature plan 
4. Why company needs funds 
5. Where company use the funds 
6. Company management  ( CEO , Founder, co founder , manger, etcetera. )
7. Company loan 
8. Check Shares value is under valued 
9. Check shares value is over valued
10. Company investors 
.
.
.etcetera.
You have to this information so contact with me 👇
You go on this link 👉 https://talkinformation.blogspot.com/p/contact-us_14.html?m=1

contact from and 
write in comment IPO Company name and submit it. With In 12 hours we send all information about Company.

Thank you.