Reason For Company Issue Shares To The Public

Public IssueMost firms are generally began privately through their promoter(s). However, the promoters capital and also the borrowings from financial institutions as well as banks may not be adequate for establishing or operating the business more than a longer term.

Therefore firms invite people to contribute for the equity and issue stocks to individual traders. The best way to receive share capital from the people is via a’Public Issue(IPO). Fundamentally, a public issue is an offer for the public to subscribe to the stock capital of a firm. Once this is done, the firm allots stocks for the applicants according to the prescribed rules laid down by Securities and Exchange Board of India. reasons

Be Sociable, Share!
Tags:

Stock Market Basics For Beginners

Assets

Assets Assets is owned by a company or a person. Property are listed on a company's balance sheet and include tangible things like inventory, equipment, and ...…

Short Term Share Trading

Short Term Share Trading Short term share trading means purchasing stocks and holding them for several time period is called Short term share trading. Short term trading involves buying ...…

The Timeframe For Obtaining Refund When Shares Not Allotted?

The Timeframe For Obtaining Refund When Shares Not Allotted? According to Securities and Exchange Board of India guidelines, the Basis of Allotment needs to be finished with fifteen days from the IPO issue end ...…

Investment Definition

Investment Definition Investment means; investing money in property, equity (stock and share), bonds and business or purchasing goods for making more money. Education and health Expenditure is ...…

Meaning For Abridged Prospectus

Meaning For Abridged Prospectus 'Abridged Prospectus' is usually a shorter model of the-Prospectus and possesses all the significant features of a Prospectus. That accompanies the application-form of public issues - [ad ...…

Indian Share Tips

NSE Investment Site

Market Update

Share Guide

Designed by VMV
web
analytics