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IPO basics

Initial Public Offer (IPO)

Friends i dont know whether you are new to share market or share industry or not. but i am going to tell you here the the IPO issues.

As we know almost many country whether they are democratic or communist have a stock market, as NASDAK in USA and NSE or BSE in India.

Actually, a share is a partenership certificate of a company which has some limitation and some rules (Implied by the government of the respective country in which the share is to be marketed) before it can be listed or marketed on their stock exchanges.

So initially the share issuer company issue their partenership certificate in open market so that the public of that country can buy their shares(partnership certificate).

That certificate of that company is called the share certificate and the whole process to sell the shares is called "initial public offering" thus the offer to let the people buy their shares is called "Initial Public Offer".

This process starts from the advertisments to the newspapers and ends with the issuing of shares certificates, to the buyers.

"SO THE PROCESS TO PEOPLE TO LET THEM BUY THEIR SHARES AND GIVING THEM AN OFFER FOR IT CALLED INITIAL PUBLIC OFFER".

Learn more about this author, Shobhit Verma.
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