What is an IPO - Initial Public Offering. What is its relation to the primary market.


3 Answer(s)


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IPO MEANS INITIAL PUBLIC OFFER. INITIAL PUBLIC OFFER IS A PART OF PRIMARY MARKET, WHERE NEW COMPANY CAME IN MARKET WITH SHARES FOR NEW CUSTOMERS FOR FIRST TIME.

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What he told is correct.Adding to that IPO is a primary market Where a public limited company raises capital by offering shares(i.e. ownership)to public. Through IPO organisation can raise long term capital by offering equity shares in return of paying dividend. Individual or Organisations or QIBs or FIs can buy the shares.Individuals can subscribe IPO through ASBA.It bridges the gap between ultimate savers and ultimate investors.An IPO is called successful when it is over subscribed. Minimum subscription should be 90% of issue amount.

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