In the world of finance, companies seeking to raise funds through public offerings rely on the expertise of appointed brokers to attract investors. These brokers are respons...
A company may choose to withdraw from its planned offering of securities, also known as a securities withdrawal. This can occur for various reasons, such as changes in marke...
One of the primary sources of funding for emerging companies is venture capital. These firms provide financial support to private companies seeking to develop and market the...
In the world of finance, the underwriter plays a crucial role in the issuance of securities. They take on the risk of buying the securities from the issuer and then selling ...
A company may choose to issue its own stock, which can then be repurchased and held in its treasury. This stock does not receive any dividends and does not hold any voting r...
A shareholder is an individual who possesses ownership in a company through holding shares of its stock. Shareholders have a stake in the company's success and are entitled ...
An esteemed group of broker/dealers serves as a vital component in the distribution of securities through an underwriting syndicate. This syndicate plays a crucial role in f...
A common occurrence in the world of finance is the public sale of previously issued securities. These securities are typically held by large investors, such as corporations ...
Underwriting involves the vital task of introducing institutional investors to a company's offerings, personnel, and financials, in preparation for its initial public offeri...
When a company offers its shares to the public, it is required to provide a thorough understanding of the potential risks involved. This is known as the issuer's management d...
A retail individual investor is someone who seeks to invest in securities with a maximum value of Rs.1,00,000. This term is important in the world of finance as it refers to ...
As part of their role in public offerings, they oversee the administrative tasks involved. This includes gathering information from the collecting banks and reporting it to ...
In the realm of finance, there exists a term that is of utmost importance to both companies and investors - the offering price range. It represents the estimated price at wh...
Corporate bonds are a type of investment where a company issues shares to investors at a predetermined interest rate. This means that investors receive a fixed amount of int...
A crucial aspect of finance is understanding the supply of new issues that are expected to enter the market. This is commonly known as the 'visible supply' or pipeline. It i...
is known as the paid-up capital. This means that the shareholders have contributed the full amount of their investment as stated in the company's prospectus or articles of as...
In finance, oversubscription refers to a scenario where investors are eager to purchase a new security, leading to a higher demand than the available supply. As a result, th...
The initial public offering (IPO) price is determined by the lead manager and marks the first sale of shares to the public. This price is typically set after the close of st...
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The date of issue refers to the initial day in which a financial security is publicly traded. This is a significant event that marks the beginning of a company's journey...
A security that is available to the public for purchase for the first time is known as an initial public offering (IPO). This process allows a company to raise capital by is...
In finance, the term "Net Offer" refers to the remaining issued capital after allotting shares to promoters. This capital is then raised from the public. It is an essential ...
Understanding the concept of lock-in is crucial when studying finance. In simple terms, it refers to a restriction placed on the transfer of shares. This restriction is impo...
Securities undergo a crucial process before being officially quoted on a stock exchange for trade. This involves meeting certain requirements and being listed on the exchang...
A crucial aspect of finance is understanding the different types of application processes. An application can either be completed individually or jointly with others. In a j...
Securities are financial instruments that represent a form of ownership in a company or government entity. They can take the form of stocks, bonds, or derivatives. The proces...
When a new security is offered to the public, its initial price is known as the issue price. This is the price at which investors can purchase the security before it starts ...
A company's ownership of sufficient shares in another organization to exercise voting control is known as a "controlling interest." This ensures that the controlling company ...
Welcome to our lesson on finance related terms. Today, we will be discussing the concept of underwriting and its two types: hard and soft. Underwriting is a crucial process ...
An integral aspect of the underwriting agreement grants the issuer the ability to authorize additional shares, usually around 15 percent, to be distributed by the syndicate ...
An Initial Public Offering (IPO) is a crucial step for a privately held company to go public by offering shares of stock to the general public. This process involves a detai...
In the world of finance, we often come across the term FPO. It stands for Follow-on Public Offering, which is when a company that is already listed on the stock market decid...
Let us delve into the concept of flipping in the world of finance. When an investor purchases an IPO at its offering price and quickly sells it on the open market, it is kno...
"Let's discuss a key term in finance: Firm Allotment. When a company is looking to raise funds, it may allocate a portion of the total amount to its promoters. This is done ...
When preparing to file a prospectus, it is important to include all necessary documents that must be submitted to the Registrar of Companies (ROC). These documents provide i...
In the world of finance, a company's performance is often measured by its share performance. However, there are external factors that can greatly impact a company's success,...
The term "new issue" refers to the first day that a newly registered security can be offered for sale to the public. This is an important concept in finance, as it signifies...
A "Draft Offer document" is a preliminary version of the offer document that is submitted to the Securities and Exchange Board of India (SEBI). This is done at least 21 days...
An issuer can directly offer securities to the public without the involvement of an Investment Banking firm. This process, known as a direct public offering, allows the issu...
As a professor of finance, it is imperative to understand the concept of securities and their purchase. An offer to purchase securities is contingent upon the effectiveness ...
When a company decides to go public or offer additional shares, it typically seeks the assistance of multiple underwriters. These underwriters play a crucial role in managin...
A company's initial public offering (IPO) or secondary issue may face challenges in attracting investor interest, hindering its ability to raise the desired capital. In such...
An important aspect of the stock market is the introduction of new stocks through Initial Public Offerings (IPOs) and the sale of already existing stocks through secondary o...
This is an important aspect to consider when investing in the stock market.
In the world of finance, one must be aware of the commission fees that brokers charge for facilit...
An underwriter plays a crucial role in the financial world by committing to purchase all the shares from a company, thus taking on the responsibility of selling them. This p...
The Lead Manager (LM) plays a crucial role in the pre-issue process of a company's public offering. This includes conducting due diligence on the company's operations, manag...
A book building offer is a process in which the price range is determined by syndicate members and the final price is decided by the public through a tender method. This all...
In the world of finance, there exists a term known as bonus shares. These shares are issued by a company to utilize its reserves and surplus without any cost to its sharehol...
When an issue closes, the received bids are grouped into categories such as firm allotment, Qualified Institutional Buyers (QIBs), Non-Institutional Buyers (NIBs), and Retai...
As a professor of finance, it is crucial to understand the role of bankers to the issue in the process of raising funds for an initial public offering. These individuals are...
Equity capital, also known as share capital, refers to the funds that a company raises by issuing shares to its shareholders. This amount is determined by the Memorandum of ...
A crucial event in the corporate world, the shareholders meeting is a yearly gathering to evaluate the company's past performance and forecast its future trajectory. This me...
An IPO's aftermarket refers to the trading that occurs after its initial offering. The volume of trading is typically very high on the first day as investors rush to buy sha...
In the world of finance, it is not uncommon for a publicly traded company to offer additional shares to the public. This process, known as a secondary offering, allows the c...
