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
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.
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)
IPO PROCEDURE IN INDIA