All of you must have heard the name of share market, share market is very famous in today’s time and why not today people are becoming millionaires by investing money in share market.
Share market comes first in the way of earning money online, now all the work of share market is done online, in that there is another factor which we know by the name of IPP, Do you know, What is IPO and How to earn Money from IPO?
In today’s time, people do not get the right information, still there are many people in the world who consider the stock market to be a gamble and prefer to stay away from it.
But the stock market is not a gamble, if you put your mind in it, then you can become a millionaire too, if you do not use your mind properly, then you can also ruin everything in it.
Today I will try my best to give you all the information related to IPO, you just read this article completely so that you do not have any doubt related to IPO because many people are still not aware about it.
And our job is to provide accurate information to you so that you understand everything very closely, let us know. What is IPO, how to make money from it, how to invest in IPO, its advantages and disadvantages.
IPO Full Form-
The full form of IPO is “Initial Public Offering” which means the company offers its shares to the public for its own benefit.
What is IPO?
IPO is a medium where Big Companies alloted their stocks to Public. In this process of IPO all the company’s shares are in the hands of the public.
In return, the whole company collects funds from the public, IPO is a very good medium, only limited company is added to IPO to earn money by investing money.
All these company comes in the IPO so that public can do direct trading from their shares and the entire profit goes to the company, apart from this there are other companies that give their shares to the public through the Bank.
Just a few days ago, LIC Company, which is an insurance company, has also registered its company in IPO, in a few days LIC’s shares will start coming in the stock market.
Why IPO Company doing Registration?
Why do companies register in IPO, this question must have come in your mind, friends, All the big companies that register their company in IPO, they do it for their own benefit.
All the companies that are there, they all like to go to the IPO because it benefits their company and increases the range of their company.
Whenever the company gives its shares to the public, then that company gets a lot of money from the public, due to which the company works hard to advance itself. After the company is listed in the IPO, the brand value of that company increases a lot among the people.
All the companies that get listed in the IPO, then they get a lot of benefit in future time and with whichever company they deal, that deal also becomes very easy because they can pay that company through stocks.
How many Types of IPO?
There are two types of IPO, it is divided into two parts, first is fixed price or fixed price issue IPO and second is book building or book building issue IPO. Let us know what is Fix Price, Book Building.
1.Fix Price or Fix Price Issue IPO
2. Book Building IPO
1.What is Fix price Issue IPO?
In this process of Fix Price IPO, whenever any company brings its IPO to the public, then it has to first discuss with the Investment Bank about the price of the IPO and also consider that aspect.
The investment bank decides the company’s IPO prices, Then any person can buy Stocks of company the price set by the company at that price.
2.What is Book Building IPO?
Book building IPO means that the company, with the investment bank, determines the price of its IPO and only after the company’s price is decided by the investment bank, the company gives its shares to the public.
Any investor can buy shares only at the price fixed by the company. Book building IPO also has two parts, first floor price, second cap price, what is the meaning of these two, let us first know them.
- Floor Price
- Cap Price
What is Floor Price?
In the book building process, the floor price is the lowest price at which a bid can be doing by investor. The prospectus mentions either the floor price of the securities or the price band at which investors can bid.
What is Cap Price?
Cap price is highest bidding of shares alloting by company in IPO.
How to invest in IPO?
Investing money in IPO can be a bit difficult for you because if you are in the stock market for the first time and you have absolutely no idea about which company you should buy stock and which company you should not buy stock.
You should have all information about IPO when Invest first time, if you want to invest money in the stock market, then IPO can be a very good option for you. Get good information
If you are going to buy IPO of any company, then always keep one thing in mind that your broker should be good, he should be aware, if possible, you should choose a company along with the broker.
You are buying the IPO of Zomato or LIC company, you must check one thing whether that company is working well in the stock market or not, you start comparing it with another company, you will benefit a lot from it.
If you want to invest money in IPO, then do a little research about the company of which you want to buy stock, then invest money in that company. Before buying an IPO, check its price and keep inquiring about the company from all the other investors from the market.
These are some things keeping in mind that you have to buy stock of any company, if you work keeping all these things in mind then you can invest money on it.
How to Earn Money from IPO?
If you want to earn money from IPO then it is very important for you to have good knowledge about share market and you also need to know how IPO works.
Whenever a company gets itself listed in the IPO, it has to fix the price of its shares with the Investment Bank, only then it brings its shares to the market, after which the company’s shares go to the stock market.
At such a place, the share price of these increases further, to earn money from IPL, it is very important for you to have information about good stocks, as I told you, you have to buy good stocks after good Research.
If you do not have information about how to buy a good stock, then keep an eye on the company whose stocks you want to buy, see it, get information about it, then only you buy the stock of that company.
Otherwise, you can loss at the time of earning money, so you can also suffer a huge loss, so to earn money in IPO, you will have to invest your money very wisely only then you will be able to earn good money from here.
How to invest in any IPO?
If you want to invest your money in IPO or Stocks, You should have any Demat Account for buying any company’s stocks. You can not buy direct shares of company. So you have many option to choose Brocker. But my suggestion is that you should choose Reliable Broker Company. According to my suggestion you can choose Upstox. Which is the one of the best serving for 12 years in stock market. It gives many sevices option like buy stocks, IPO, and Trading easily on this app. For openning Demat account You should have Bank accounts with internet banking or UPI facility and Aadhar card, Pan card. You can direct open your Demat account throgh given link click the Upstox .If you open through this link you have no pay any charges any you can get 250 rupees instant in your portfolio after completed. and you can also open account through Groww app, Here is facility to Trading and You can also buy US Stocks like Gooogle, Microsoft, Yahoo, Netflix shares from this Demat account
If you getting any trouble to oppening Demat accounts you can contact to send your question on email Box. We will help to open your account.
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