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IPOs
Initital public offerings of stock. The first sale of stock by a previously private company to public shareholders.
560 Questions
What are Nairobi stock exchange listing requirements for companies stock?
It depends on which market segment the company intends to get listed on. There are three investment market Segments at the Nairobi Securities Exchange namely Main Investment Market Segment (MIMS); Alternative Investment Market Segment (AIMS); and Fixed Income Securities Market Segment (FISMS). Each segment has different requirements.
What is the difference between return on equity and return on net worth?
Return on equity is the rate of returns you earned on your equity investments
Return on net worth is the rate at which your entire property is growing (Your net worth is the sum of all your assets - all your liabilities)
What was the largest IPO in US history?
Visa's IPO at $44 per share on March, 18, 2008 raised $17.9 billion for the company. It stands as the biggest IPO ever in the history of the United States.
What was the largest IPO ever in the world?
The biggest IPO ever was Industrial & Commercial Bank of China. It raised $22 billion in 2006.
What are the objectives and functions of sebi critically evaluate performance of sebi?
Objectives of SEBI:
As an important entity in the market it works with following objectives:
1. It tries to develop the securities market.
2. Promotes Investors Interest.
3. Makes rules and regulations for the securities market.
SEBI is the primary governing/regulatory body for the securities market in India. All transactions in the securities market in india are governed & regulated by SEBI.
The Following are some of the main functions of SEBI:
1. The business that happens in the Indian stock exchanges and other securities markets in India
2. Registering and monitoring of Intermediaries like Brokers who may participate in the securities market
3. Registering and monitoring the work of depository participants, custodians of securities, FII's etc
4. Prohibiting unfair trade practices and fraudulent practices in the markets
5. Promoting Investor education
6. Training of Intermediaries
7. Prohibiting Insider trading
8. Regulating substantial acquisitions and take overs of companies.
How many nifty are there in nse?
There is only 1 Nifty in NSE. NSE or National Stock Exchange main index comprising of 50 stocks from different sectors are called Nifty or to be precise Nifty50. One can visit http://www.nseindia.com to get list of stocks comprising Nifty50.
IPO stands for Initial Public Offering. It is when a company offers its shares for sale to investors, usually with the aim of getting a wide spread of shareholders so it can list on a stock exchange for the first time.
Answer:An IPO or an Initial Public Offering, which is its full form, is the first sale of stock by a company to the public. By issuing an IPO, a private company becomes a public company and invites public investors to become shareholders by buying the company stock. Since public companies have a lot of shareholders, they have to play by stringent rules laid down to protect investor interests and have to share financial and other information with the public.Many traders like to invest in IPOs. However, you need to understand how the IPO market functions before you invest in it. You should also be able to do IPO analysis or have a personal financial or investment advisor who can do it for you if you want to invest in IPOs.
What are initial public offerings?
Initial public offering (IPO), also referred to simply as a "public offering", is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately owned companies looking to becomepublically traded .
In an IPO, the issuer may obtain the assistance of anundrewriting firm, which helps it determine what type ofsecurity to issue (common preffered ), best offering price and time to bring it to market.
IPOs can be a riskyinvestiment . For the individual investor, it is tough to predict what the stock or shares will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, and they are therefore subject to additional uncertainty regarding their future value.
What are the functions of primary market?
The primary market is that part of the capital markets that deals with the issuance of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers. The process of selling new issues to investors is called underwriting. In the case of a new stock issue, this sale is an initial public offering (IPO). Dealers earn a commission that is built into the price of the security offering, though it can be found in the prospectus. Features of primary markets are: * This is the market for new long term capital. The primary market is the market where the securities are sold for the first time. Therefore it is also called the new issue market (NIM). * In a primary issue, the securities are issued by the company directly to investors. * The company receives the money and issues new security certificates to the investors. * Primary issues are used by companies for the purpose of setting up new business or for expanding or modernizing the existing business. * The primary market performs the crucial function of facilitating capital formation in the economy. * The new issue market does not include certain other sources of new long term external finance, such as loans from financial institutions. Borrowers in the new issue market may be raising capital for converting private capital into public capital; this is known as "going public." * The financial assests sold can only be redeemed by the original holder.
What is the difference between a secondary offering and IPO?
An IPO is the Initial Public Offering a company makes when first becoming a publicly traded company
the main service functions of primary market are as follows:
1) Organisation: deals with the origin of the new issue. the proposal is analyzed in terms of the nature of the security, the size of the issued timings of the issue and flotation method of the issue.
2) Underwriting: underwriting is a kind of guarantee undertaken by an institution or firm of brokers ensuring the marketability of an issue. it is a method whereby the guarantor makes a promise to the stock issuing company that he would purchase a certain specific number of shares in the event of their not being invested by the pubic.
3) Distribution: the third function is that of distribution of shares. distribution means the function of sale of shares and debentures to the investors. this is performed y brokers and agents. they maintain regular lists of clients and directly contact them for purchase and sale of securities.
Are new shares created in an Initial Public Offering IPO?
Yes. They are "new shares" because this is thie first offering of shares by a company now going public.
What is the meaning of the 2 sides of a T-Account?
One side is for Debits (left side) and the other is for Credits (right side).
How do you become a licensed stock broker?
You must be sponsored by a stock exchange member then you must take and pass the Series 7 exam. You must also take and pass the Series 63 & 65, or you can just take the Series 66 (which includes both). Most people now are taking the Series 66 because it affords you the title of Registered Investment Advisor and allows you to recommend "managed accounts".
What is 'market flex' and ' Clear market provisions' in the context of Corporate loan market?
Loan-price volatility has ushered in a new era of flexible pricing, adding an element of unpredictability into the process for borrowers. Bankers are now leaving the door open for price adjustments up to the time the syndication closes, rather than locking in spreads in advance. It's difficult to price a loan today that will be taken to market in four to six weeks, given the increasingly volatile pricing environment. An issuer that feels strongly that it wants an underwritten price without market-flex language is typically going to get a less aggressively priced deal .fa_inline_results, .fa_inline_results.left { margin-right: 20px; float: left; width: 220px; } .fa_inline_results.right { margin-left: 20px; margin-right: 0; } .fa_inline_results h4 { margin: 0; font-size: 8pt; border-bottom: 1px dotted #c3d2dc; } .fa_inline_results ul { list-style-type: disc; list-style-position: outside; color: #3769DD; margin: 0 0 15px 15px; padding: 0; } .fa_inline_results ul li { margin: 0; padding: 0; } .fa_inline_results ul li.title { color: #333; list-style-type: none; font-weight: bold; } .fa_inline_results ul li.articles { color: #333; list-style-type: none; }
Describe the factors that determine the success or failure of an IPO?
Bearish market conditions could lead to an unsuccessful IPO (Initial Public Offering).
What is Future an options in stock market?
You are confusing a few different financial terms.
There are Stocks, Options and Futures.
Stocks & Futures both have options attached to them.
Options are a derivative.
See related links for more about stock options and how they work.
You can create an index for a table to improve the performance of queries issued against the corresponding table. You can also create an index for a cluster. You can create a compositeindex on multiple columns up to a maximum of 32 columns. A composite index key cannot exceed roughly one-half (minus some overhead) of the available space in the data block.
Use the SQL command CREATE INDEX to create an index. CREATE INDEX emp_ename ON emp_tab(ename);
Steps in an IPO Process:
Let us now have a look at how an initial public offering process is initiated and reaches its conclusion. The entire process is regulated by the 'Securities and Exchange Board of India (SEBI)', to prevent the possibility of a fraud and safeguard investor interest.
Selection of Investment Bank
The first thing that company management must do when they have taken a unanimous decision to go public is to find an investment bank or a conglomerate of investment banks that will act as underwriters on behalf of the company. Underwriter's buy the shares of the company and resell them to the general public. The company must also hire lawyers that can guide them through the legal maze that an IPO setup can be. It must be ready with detailed financial records for intensive fiscal health scrutiny that SEBI would perform. Some companies may also opt to directly sell their shares through the stock market, but most prefer going through the underwriters.
Step 1: Preparation of Registration Statement
To begin an IPO process, the company involved must submit a registration statement to the SEBI, which includes a detailed report of its fiscal health and business plans. SEBI scrutinizes this report and does its own background check of the company. It must also see that registration statement fulfils all the mandatory requirements and satisfies all rules and regulations.
Step 2: Getting the Prospectus Ready
While awaiting the approval, the company, with assistance from the underwriters, must create a preliminary 'Red Herring' prospectus. It includes detailed financial records, future plans and the specification of expected share price range. This prospectus is meant for prospective investors who would be interested in buying the stock. It also has a legal warning about the IPO pending SEBI approval.
Step 3: The Roadshow
Once the prospectus is ready, underwriters and company officials go on countrywide 'roadshows', visiting the major trade hubs and promote the company's IPO among select few private buyers (Usually corporates or HNIs). They are fed with detailed information regarding company's future plans and growth potential. They get a feel of investor response through these tours and try to woo big investors.
Step 4: SEBI Approval & Go Ahead
Once SEBI is satisfied with the registration statement, it declares the statement to be effective, giving a go ahead for the IPO to happen and a date to be fixed for the same. Sometimes it asks for amendments to be made before giving its approval. The prospectus cannot be given to the public without the amendments suggested by SEBI. The company needs to select a stock exchange where it intends to sell its shares and get listed.
Step 5: Deciding On Price Band & Share Number
After the SEBI approval, the company, with assistance from the underwriters decide on the final price band of the shares and also decide the number of shares to be sold.
There are two types of issues: Fixed Price and Book Building
Fixed Price - In a Fixed price issue - the company decides the price of the share issue and the number of shares being sold. Ex: ABC Ltd public issue of 10 lakh shares of face value Rs. 10/- each at a premium of Rs. 55/- each is available to the public thereby generating Rs. 6.5 Crores.
Book Building - A Book building issue helps the company discover the price of the issue. The company decides a price band and it gives the investor an option to choose the price at which he/she wishes to bid for the company shares. Ex: ABC Ltd issue of 10 lakh shares of face value Rs. 10/- each at a price band of Rs. 60 to 70 is available to the public thereby generating upto Rs. 7 Crores. Here the amount generated through the issue would depend on the highest amount bid by most investors.
Step 6: Available to Public for Purchase
On the dates mentioned in the prospectus, the shares are available to public. Investors can fill out the IPO form and specify the price at which they wish to make the purchase and submit the application. This open period usually lasts for 5 working days which is a SEBI requirement.
Step 7: Issue Price Determination & Share Allotment
Once the subscription period is over, members of the underwriting banks, share issuing company etc will meet and determine the price at which shares are to be allotted to the prospective investors. The price would be directly determined by the demand and the bid price quoted by investors. Once the price is finalized, shares are allotted to investors based on the bid amounts and the shares available.
Note: In case of oversubscribed issues, shares are not allotted to all applicants.
Step 8: Listing & Refund
The last step is the listing in the stock exchange. Investors to whom shares were allotted would get the shares credited to their DEMAT accounts and for the remaining the money would be refunded
