BASICS OF INVESTING IN IPO’s

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1) What is an IPO?

An initial public offering (IPO), is the first sale of stock issued by a company to the public. It is one of the ways in which companies raise capital, by selling shares in the company in return for investments. The company usually uses this money raised to pay off debt, finance current expansion, investing the future etc.

2) What are the benefits of investing in IPO’s?

Through investing in an IPO the public become shareholders in the company. This means that when the companies grow in revenues and profits, the shareholders will benefit from the rise in their stocks value and dividends. If the company is in the right sector, is managed well and grows steadily years on year, then investors can reap a bonanza.

3) How does one subscribe for an IPO?

Investing in an IPO is called subscribing for an IPO. At Geojit we have put in place simple and efficient mechanisms that allows for the smooth processing of IPO applications. We have both online as well as branch based application process’s.

Posted: October 2017