It takes a lot of effort to double an already listed share
In today’s time, many people invest money in the stock market so that they can get good returns from it. And people also get good returns. On the other hand, IPO i.e. Initial Public Offering is a similar process in which companies raise money from the market with a condition. In fact, before the IPO, the company also does business privately with limited shareholders. At the same time, the number of shares increases after the IPO. Buying an IPO is like buying shares of a company. Many new investors are found in this.
IPO opens for so many days
No company gives 5 or 7 shares through IPO. Lots are offered in this. The lot offered by the company can have from 1 to any number of shares. But during this time it is told by the company that, how many lots can be booked per person. Also it has a fixed price. The company itself has to give the information about bringing the IPO to the people. Under this, the company tells that from which day there will be a booking to buy shares. Actually IPO opens for 3 to 5 or 7 days. And after that the booking is closed. That is, you cannot book shares of any company after this.
Booking is done before buying shares
In the midst of a bullish atmosphere in the stock market and due to the abundance of liquidity, the IPO is expected to get a great response. Actually, shares can never be bought directly through IPO. First of all you have to book. In this, shares are not only available at a low price, but the returns are also good under it. Actually, most companies do this in many ways through the amount raised through IPO. Usually it is also done to increase business or launch new products.
The more profit, the more risk
The IPO also gives an exit option to the owners and initial investors of the company through an offer of sale. Along with this, they are also compensated to take the initial risk in the new business. Actually the companies which are listed in the stock stock market. It comes only through IPO. In such a situation, whenever the IPO is listed, the chances also increase that the share value will double. Whereas it takes a lot of effort to double the already listed share. But as much as there is benefit here, there is also risk. Because it is not necessary to double the IPO every time. Sometimes it is also expected to be less.
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