Primary Market

Performance of stocks listed in last three years

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Primary Market participants take utmost benefits of price discovery mechanism of IPO listings. Most of the times they earn good listing gains. But sometimes things don’t work in their favor. Either Market conditions don’t support or valuations seems too high. IPOs listed in discount, keep breaking down further. Hence Investors take losses and exit rather … Read more

Why to invest in Bonds?

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Salaried people who are afraid to take risk in direct equity investments prefer investing through Mutual Funds. But, as you are aware Mutual Funds are subject to Market risks. Therefore for highly conservative investors Bond Market is really important avenue of Investment. Most of the big Politicians and Bollywood celebrities in India prefer to invest … Read more

Allotment Procedure in IPO

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There are different segments of Investors who invest in IPOs. The three important segments are Retail Investors, Qualified Institutional Buyers, and Non Institutional buyers. As per SEBI guidelines, there are a different set of allocation rules for different types of Book Building Issues. An issuer can issue securities to Investors in two ways: 100% book … Read more

Primary Market Prospectus

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A large number of new companies float public issue. Most of these companies are genuine, but quite a few may want to exploit the investors. Therefore it is important for Investors to obtain detailed information about a Company before investing i it. What is Prospectus? As per the guidelines issued by SEBI (Securities and Exchange … Read more

Primary market Intermediaries

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Capital Market intermediaries are the important link between the regulators, issuer, and investor. SEBI has issued regulations in respect of each intermediary to ensure proper services to be rendered by them to the investors and the capital market. In this post, we will learn about some primary market intermediaries. The following market intermediaries are involved … Read more

Flow chart of IPO Process

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The process of offering shares in a private corporation to the public for the first time is called Initial Public Offering (IPO). Flow Chart of IPO Process Approval of Board: An approval of the Board of Directors of the company is required fo raising capital from the public. Appointment of Lead Managers: The Lead Manager … Read more

Advantages and disadvantages of going public

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The first public offering of equity shares of a company, which is followed by a listing of its shares on the stock market, is called the Initial Public Offering (IPO). Often going public is the best choice of growing business. The decision to go public is a very important business financing strategy of a company. … Read more

Primary Market

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Capital Market can be broadly divided in Primary Market and Secondary Market. What is a Primary Market? The Primary Market is the part of Capital Market that deals with the issuance of new securities and then sold to investor directly by the issuer. It is also known as a New Issue Market. In this Market, … Read more