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Mainly market is divided into two parts
1. Primary Market
2. Secondary Market

The primary market consists of -
1. IPO - Initial Public Offering
2. FPO - Follow On Public Offer

FPO is provided because of the following reasons -
1. Paying off debts
2.Working capital requirements
3.Expansions of the company
Starting of a new project

IPO -
An initial public offering or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail investors. An IPO is typically underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges.

FPO -
A follow-on offering (FPO) is when a public company issues more shares after their initial public offering (IPO). It happens when the company wants to raise more capital by giving out additional shares to finance projects, pay their debt, or make acquisitions.

Secondary market consists of -

NSE - National Stock Exchange

BSE - Bombay Stock Exchange

Who are the participants in the securities markets ?

1. Investors - Retail Investors, high net worth individuals, institutional investors

2. Depositaries -

National Securities Depository Limited (NSDL)

Central Depositories Services Limited (CDSL)

3. Clearing Corporation - Deliver funds or securities

4. Custodian - To safeguard the securities

SECTION 1 - Basics of capital market

INITIAL PUBLIC OFFERING (IPO)

Different types of public issues

1. FPO (Follow on public offer)
2. OFS (Offer for sale)

IPO PROCEDURE IN INDIA

1. Initial Phase -
Merchant Banker

a. Determining thr IPO procedure through financial molding
b. Appointment of IPO registrars and banking partners
c. Assistance with legal fillings
d. Marketing the IPO

2. Approval Phase
SEBI registration process

3. Disclosure Phase
Draft red herring prospectus

- Business plan and model
- Competitors
- Management discussion
- Risks and challenges
- Promoter and management details
- IPO size
- Reasons for the IPO
- Utilize the funds

4. Issue phase
Price Band - Range of share price
- Bookbinding issue
- Fixed price issue

5. Subscription phase (4-5 days)
ASBA (Application supported by blocked amount )

6. Listing phase
- oversubscribed
- fully subscribed

Different investors category for IPO

1. Retail Individual Investors (RIIs)
2. Non-Institutional Investors (NIIs)
3. Qualified Institutional Buyers (QIB)

RIIs - Bid for shares not less than 2,00,000 Rs
NIIs
QIBs - Insurance companies, scheduled commercial banks, FIIs, venture capital funds, mutual funds

In case of a full subscription (100% subscription)
35:15:50 is applied, shares will distribute according to this ratio

35% shares allotted to RIIs
15% shares allotted to NIIs
50% shares allotted to QIBs

Basis of allotment in IPO

1. Oversubscribed by a small margin = 1 lot/ shareholder
Balance allotted proportionally to investors who bid for more than 1 lot

2. Shares oversubscribed by a large margin
Shares allotted on the basis of lottery system

How to apply for IPO (ASBA)

Designated banks
> Self-certified syndicate banks (SCSBs)
> Bank recognized for providing ASBA services

1. IPO remains open for 3-10 working days
2. Public issues - ASBA as the only mode of payment
3. E-application forms can be generated from the NSE website
4. PAN number is mandatory
5. Demat account is mandatory
6. Maximum 5 IPO applications from a single bank account is allowed
7. Submit the application form to the designated bank
8. Online and offline mode is available
9. Check the status of the bidding on NSE or BSE website

Fixed price issue - shares allotted within 30 days of issue closure
Book built issue - shares allotted within 15 days of issue closure

Listing done within 3 weeks

Section 2 - UNDERSTANDING STOCK MARKET - THE PRACTICAL WAY

1. Take an overview of NSE and BSE websites 👇👇

NSE

BSE

2. Index and market capitalization

3. Demat account and a trading account

4. Contract Note

5. Five types of market sessions and market timings

6. Stock market trading terminologies

7. How to choose the right broker
A. Full-service brokers
-Stock tips
- Research reports
- Trading over a call through a dedicated dealer
- Mutual fund advisory

B. Direct brokers
- Trading platforms
- Flat fee irrespective of transactions

In India, there are only a few trustworthy brokers and they have no hidden charges, you can check their website from the link below 👇👇

8. Rolling settlement
on T+2 day basis - T-> Trade day

9. Introduction to live terminal

10. Live market terminal - dashboard, watchlist, orders

11. Newspaper analysis

12. Track market indices

If you want to learn about trading, investment, stock market and many more, then click the button below 👇👇

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Love it ! Help others by sharing

Mainly market is divided into two parts 1. Primary Market2. Secondary Market

The primary market consists of - 1. IPO - Initial Public Offering 2. FPO - Follow On Public Offer

FPO is provided because of the following reasons -1. Paying off debts2.Working capital requirements3.Expansions of the company Starting of a new project

FPO - A follow-on offering (FPO) is when a public company issues more shares after their initial public offering (IPO). It happens when the company wants to raise more capital by giving out additional shares to finance projects, pay their debt, or make acquisitions.

Secondary market consists of -

Who are the participants in the securities markets ?

1. Investors - Retail Investors, high net worth individuals, institutional investors

2. Depositaries -

SECTION 1 - Basics of capital market

INITIAL PUBLIC OFFERING (IPO)

Different types of public issues 1. FPO (Follow on public offer) 2. OFS (Offer for sale)

Different investors category for IPO

1. Retail Individual Investors (RIIs) 2. Non-Institutional Investors (NIIs) 3. Qualified Institutional Buyers (QIB)

RIIs - Bid for shares not less than 2,00,000 Rs NIIs QIBs - Insurance companies, scheduled commercial banks, FIIs, venture capital funds, mutual funds

In case of a full subscription (100% subscription) 35:15:50 is applied, shares will distribute according to this ratio 35% shares allotted to RIIs 15% shares allotted to NIIs 50% shares allotted to QIBs

Basis of allotment in IPO

1. Oversubscribed by a small margin = 1 lot/ shareholder Balance allotted proportionally to investors who bid for more than 1 lot 2. Shares oversubscribed by a large marginShares allotted on the basis of lottery system

How to apply for IPO (ASBA)

Fixed price issue - shares allotted within 30 days of issue closure Book built issue - shares allotted within 15 days of issue closureListing done within 3 weeks

Section 2 - UNDERSTANDING STOCK MARKET - THE PRACTICAL WAY

1. Take an overview of NSE and BSE websites 👇👇

8. Rolling settlement on T+2 day basis - T-> Trade day 9. Introduction to live terminal 10. Live market terminal - dashboard, watchlist, orders 11. Newspaper analysis 12. Track market indices

If you want to learn about trading, investment, stock market and many more, then click the button below 👇👇

Mainly market is divided into two parts
1. Primary Market
2. Secondary Market

The primary market consists of -
1. IPO - Initial Public Offering
2. FPO - Follow On Public Offer

FPO is provided because of the following reasons -
1. Paying off debts
2.Working capital requirements
3.Expansions of the company
Starting of a new project

FPO -
A follow-on offering (FPO) is when a public company issues more shares after their initial public offering (IPO). It happens when the company wants to raise more capital by giving out additional shares to finance projects, pay their debt, or make acquisitions.

Different types of public issues

1. FPO (Follow on public offer)
2. OFS (Offer for sale)

1. Retail Individual Investors (RIIs)
2. Non-Institutional Investors (NIIs)
3. Qualified Institutional Buyers (QIB)

RIIs - Bid for shares not less than 2,00,000 Rs
NIIs
QIBs - Insurance companies, scheduled commercial banks, FIIs, venture capital funds, mutual funds

In case of a full subscription (100% subscription)
35:15:50 is applied, shares will distribute according to this ratio

35% shares allotted to RIIs
15% shares allotted to NIIs
50% shares allotted to QIBs

1. Oversubscribed by a small margin = 1 lot/ shareholder
Balance allotted proportionally to investors who bid for more than 1 lot

2. Shares oversubscribed by a large margin
Shares allotted on the basis of lottery system

Fixed price issue - shares allotted within 30 days of issue closure
Book built issue - shares allotted within 15 days of issue closure

Listing done within 3 weeks

8. Rolling settlement
on T+2 day basis - T-> Trade day

9. Introduction to live terminal

10. Live market terminal - dashboard, watchlist, orders

11. Newspaper analysis

12. Track market indices