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v | Whats meant by:"IPO and For one share face value or theoritical value:generaly 10,5,2or 1Rs."? |
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arizona wolfman
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IPO = Initial Public Offering. That is the first time that shares are offered to the public. For example, VISA is going public this year. On the day they offer shares to the public, that offering is called an IPO.
I really don't understand your other question - too many abbreviations. I've only been an active trader for 2 years. |
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fixitman
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IPO is Initial Public Offering and sometimes only offered to select group of people. The stock will usually climb much higher than they are sold for at the IPO price. Usually a good investment short term.
Not sure about the other part of the question.
I AM NOT AN EXPERT! |
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sureshcm m
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Initial public offer |
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h0ckeynut17
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Maybe there's more info here: http://en.wikipedia.org/wiki/IPO or via the language links on the left if English is not your first language. |
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Chris J
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IPO=Initial Public Offering= First time stock is being offered for sale to the public(determines share pricing in most cases) |
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vasant_mv
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See.. The first time a company wants to float its shares into the market it will release what is known as an IPO. After it is released into the market it will trade at the market determined value.
What we have to understand here is that when a company is trying to divest its wealth among the public then the share of that which each of the people hold. Suppose a company decides to divest some 100 crores of its revenue. It will decide to divide this 100 crores into certain number of shares with a face value (the actual value of the share), say a 10 rs share or a 5 or 2 or 1 re shares. So accordingly it will float those many shares (100crs / value of one share) into the market. But actually there are so many other factors like the companies growth prospects, its future plans, its present setups which all determine the price much beyond the 10 rs face value. This value is determined by stating a price band for the IPO say 100-150 rs (10 to 15 times its face value). Now the market decides as to what is the appropriate value is after the IPO book building process. And the share then trades as usual in the market.
Hope this clears your doubt to a certain extent... |
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Focus
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IPO stands for Initial Public Offer. This is how a company collects capital from the public. Once this process is over, the stocks of these company get listed on the stock exchange and you can start trading in these stocks.
Face value is the primary value of the stock, which is generally 10Rs. when it enters through an IPO. Successively through stock splits, the face value can alter and become 5, 2 and so on. |
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