An unlisted company (A company which is not listed on the stock exchange) launches initial public
offering (IPO) to raise funds through sale of securities or shares for the first time to the public.
Or simply can be said an IPO may be the first time the general public can buy shares in a company.
It is the selling of securities to the public in the primary market. A primary market deals with new
securities being issued for the first time. After listing on the stock exchange, the company becomes
a publicly-traded company and the shares of the firm can be traded freely in the open market.
Some terminologies you should keep in mind while investing in an IPO: Common stock. Issue price, Lot size.
Preliminary Prospectus, Price band, Underwriter.
IPO analysis parameters
- Macroeconomic to MIcroeconomic Approach
- Sector Analysis and Research
- Company Specific Valuation Ratios
- Prospective Growth of a Company
- Company Governace and Managerial Role
- Interest of institutional investors
- Select a Good Broker
- Demat Services
- Mobile Trading App
- Desktop Trading App
- Browser Trading Platform
- 24*7*365 Customer Support
- Algo-trading: Algo-trading is the use of predefined programs to execute trades.
A set of instructions or an algorithm is fed into a computer program and it automatically
executes the trade when the command is met. The algorithm can be based on a number
of input points like price, timing, quantity or other metrics