What is IPO?
IPO stands for Initial Public Offering. As the name suggests it’s the process wherein a company goes to public for the first time for raising money by offering ownership in the company. In this process a private limited company becomes Public Limited Company.
The main aim of coming to IPO is to raise funds for expanding the business. The structure of a public limited company is different from that of a privately held company. Once it becomes public it must disclose its financial reports on a regular basis (In most cases, Quarterly) to public. It has to appoint share holders elected directors who take key decisions of business. But if the promoter holds major percentage he still can influence the decisions.
It does not need to pay interest on the capital raised from Public. Even it doesn’t need to repay the capital. Only in case of liquidation/bankruptcy it needs to pay the residual amount after paying bank loans, debentures, preferential shares etc.
Related posts
Comments
Leave a Reply
-
-
Recently Posted
- Investing in Infrastructure bonds FY 2010 – 2011
- Income Tax new Slabs FY 2010 - 2011
- Mutual Funds - Risk Measures
- Exchange Traded Funds (ETF) – Indian ETFs
- Mutual Funds – Market Cap Breakdown
- Mutual Funds – Credit Rating Breakdown
- Mutual Funds – Asset Allocation Breakdown
- Mutual Funds – Sector/industry Breakdown
- Mutual Funds - Country Breakdown
- Mutual Funds - Breakdown Information
-
Polls
Loading ...
WP Cumulus Flash tag cloud by Roy Tanck requires Flash Player 9 or better.
-
-
FREE E-mail Subscription
Most Viewed posts
- 9 tips for success of share market investors
- BSE NSE list of Holidays 2009
- Bulk Deals and Block Deals
- Let’s understand Stock quotes - BSE Quotes
- NSE Quotes – Record Date/ Book Closure Date/Ex Date/BC Start Date/BC End Date
- Trade Clearing and Settlement in Stock Markets
- What is CRR (Cash Reserve Ratio) ?
- What is IPO?
- What is Recession ?
- What is Repo Rate, Reverse Repo Rate ?
- What is sensex ?
- RAMESH commented on What is FPO (Follow on Public Offer)?
- vijay commented on What is FPO (Follow on Public Offer)?
- vikram commented on What is FPO (Follow on Public Offer)?
- Mutual Fund India commented on Mutual Fund performance calculations
- Harsha commented on What is FPO (Follow on Public Offer)?
- Kavina commented on What is FPO (Follow on Public Offer)?
- Ajay commented on Calculation of Mutual fund Expense Ratio (TER)
- d biswanath commented on Save Income tax with Home loan
-
Categories
-
Archives
Latest Comments
