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IPO stands for Initial Public Offering. That is when the first time the Company issues its shares to public or offers its shares for public subscription - it is said to be doing the IPO.

IPOs are generally for Equity shares only. Thus these shares could be issued at the face value of the share or at a premium. (though theoritically at a discount is also possible, it is never the practice).

Thus, if it is at face value - it is called IPO at Par; and if it is charged at a price higher than face value, it is called IPO at a premium.

Hope this answers your querry.

Cheers

2006-07-25 02:19:25 · answer #1 · answered by deebeein 4 · 0 1

An IPO means an Initial Public Offer...it is an offer made by a registered company to the general public to buy it's share at it's face value (Rs. 10). Thus, through an IPO, a company, for the first time, sells it's shares to the general public. It advertises the amount of shares it is selling and the ratio in which these are available to institutional bidders, general public, etc. is generally governed by law. These are usually sold at the face value of Rs. 10 per share or sometimes through a book building process, ie., the company specifies a price band (eg. between Rs. 10-20) and bidders can quote the price they are willing to offer for the same in the application form accompanied by a cheque for the total amount. The average quote received is taken as the final price and fixed as such by the company. All offers made at this price or higher are accepted and shares are alloted to them, rest are refunded their money. Share certificates are issued to allotees who can then trade with them on the stock exchange.

When the same company makes another offer of it's shares to the public to raise more money, it is called a Subsequent Public Offer (SPO)

2006-07-25 00:00:34 · answer #2 · answered by Nisha 4 · 0 0

IPO = Initial Public Offering. When a private company wants to become "public" (meaning selling its stake in the form of common stock), it needs to go through various process, one of which is a IPO.

2006-07-24 23:55:05 · answer #3 · answered by heuiim 2 · 0 0

IPO stands for Initial Public Offering
It means the first time the company offers its shares to the public for sale. Initial(first) Public(Public) offering(offer for subscription)
It is better to invest in any company's shares as they are cheaper to get during IPOs than their market price. This is so as they require to get at-least 90% of their shares subscribed or they have to return the money collected back to the subscribers.
So the company motivates the public by offering their shares at lower prices to avoid legal tussle

2006-07-25 00:28:36 · answer #4 · answered by apurav a 3 · 0 0

Initial Public Offering

Its the first sale of stock by a company to the public.

2006-07-24 23:57:28 · answer #5 · answered by SAM 5 · 0 0

initial public offering

this is when a company first sells stock to the public.

2006-07-25 00:39:41 · answer #6 · answered by arundel survivor 2 · 0 0

Initial Public Offering - it means when shares of stock are made available for sale (i.e. offered) to the public (i.e. anyone who wants to buy) for the first time (i.e. initially).

2006-07-24 23:56:47 · answer #7 · answered by Anonymous · 0 0

initial public offering

it's when a company "floats" on the stock market

2006-07-24 23:54:11 · answer #8 · answered by phil_the_sane 3 · 0 0

you will get hammered. Your oder will bypass with the aid of in spite of everything the millionaires that have a broking service on the telephone placed their orders. Then after that top (10 minutes later) they commence advertising. careful - be very careful. /

2016-10-08 07:20:00 · answer #9 · answered by ? 4 · 0 0

http://en.wikipedia.org/wiki/Initial_public_offering

2006-07-24 23:56:13 · answer #10 · answered by skigod377 5 · 0 0

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