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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

Describe a ipos cycle?

Input. You put some thing into the device

Processing. The device changes the input in some way.

Output. You take results out.

Storage. You may save any results that have future value.

The cycle in which data is cycled through the computer. I stands for input, P stands for processing, O stands for output, and S stands for storage.

When was SEBI started?

The Securities and Exchange Board of India was established on April 12, 1992. 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

Why us dollar is the medium of exchange?

The American Dollar is one of the most commonly used currencies and hence it is a preferred medium of exchanges for parties who do not share the same currency.

How many sectors in nifty?

The S&P CNX Nifty covers 22 sectors of the Indian economy

What determines how many shares a company issues during it's IPO?

There can be various factors, but a primary reason is the need or desire to raise a certain amount of funds to fuel the company's growth plans. Also, investor demand (or lack of demand) for the companies shares can raise or lower the initial amount of shares to be issued. As well, the overall market opportunity or industry capital requirements can generally determine how many shares will be raised; for example, an airline company will likely need to issue many more shares than a software company.

If I bought 10000 dollars worth of berkshire hathaway stock 10 yrs ago what would it be worth today?

10 years ago Berkshire Hathaway Closed at 69,400.00 (August 4th 1998) and since Share builder did not exist I doubt you would acquire a fractional share. However last fridays (August 1st 2008) closing price of 116500.00 demonstrates an increase of 167.86 over the 1998 price. So hypothetically, $10000.00 August 4th 1998 would be $16786.74 today

For the company who had already have IPO mif they want to issue the new shares are they need to make another IPO?

No. A company can issue an IPO only once. They can issue new shares through bonus shares or through rights issues.

Why it is so called red herring prospectus?

Source: Wikipedia

The term red herring originates from the tradition whereby young hunting dogs in Britain were trained to follow a scent with the use of a "red" (salted and smoked) herring (see kipper). This pungent fish would be dragged across a trail until the puppy learned to follow the scent. The reason it is called a red herring is due to a disclosure statement printed in red ink on the cover which explicitly states that the issuing company is not attempting to sell its shares. e.g. "A Registration Statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. Information contained herein is subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective."

When is a blind trust fund payable?

A "blind trust" is payable whenever the terms of the trust say it is payable. A "blind trust" has no features that are different than any other trust except for the fact that the beneficiaries are not allowed to see where the trust assets are invested or influence how they should be invested.

What are the benefit of IPO for investors and company?

For Company:

* They can raise capital for their business. They can use to fund their expansion & growth.

For Investor:

* Ideally speaking, the stock of any fundamentally sound company would go up after being listed in an exchange. Hence the IPO is the only place where you can get the stock at the lowest possible price. Hence if they buy stocks in an IPO, they can sell it off at a higher price and make a profit

When was Procter and Gamble's initial public offering date?

Proctor and Gamble ceased to be a private company and held its first public offering in 1890. The company began as a partnership between a candle-maker and his chemist son-in-law in 1837. They were pioneering in the concept of profit-sharing, making their workers a part of the company as a simple strategy that would prevent strikes.

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.

Role of SEBI?

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.

What is IPO in share market?

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