WHAT IS AN IPO?

You’ve heard about IPOs & would like to learn the basics? Angel One presents fun-to-learn 60sec videos to help beginners grasp the basics of equity & share-trading.

Every beginner or newbie should learn about the available investment options that might offer him good returns. Therefore, it is absolutely necessary to understand what is an IPO before you actually invest in IPO. Here’s an easy explanation of What is an IPO & how it works.

Transcript :

Meet Ajay. He owns a medium size company in Mumbai. To expand his business outside Mumbai, Ajay would need Rs. 1 crore. To raise this amount, Arvind decided to sell a part of his business to the public by issuing shares through an IPO. When a company issues shares to the public for the first time, it is done through an IPO or Initial Public Offering. Ajay decided to sell 10% of his 10 crore company by issuing 1 lac shares priced at Rs. 100 each. The shares were then listed on a stock exchange for the public to buy. In time, Arvind’s business flourished & the share prices of the company increased. The investors who bought his shares through the IPO, sold their shares at a higher price & made great profit. You can buy shares of an IPO by partnering with Angel One.