What is IPO
By: Vansh Jha
Tags: Financial Planning, Share Market Tips, Investing, IPO, Finance

IPO (initial public offering), any company issues an IPO when it is first listed on the stock market. The company raises funds from people through an IPO and in return gives them a shareholding in the company.

We get this information easily after searching about the IPO.

Only after getting the information, we start thinking, take the shareholding in a company through an IPO.

But when a little thought is made about buying an IPO, then a question comes to our mind, what will be the benefit of buying an IPO?

And these are human behavior, after knowing any thing, we definitely think what will be the benefit of this? Or how to take advantage of this?

Moreover, the business field is completely built on the concept of profit. Both the IPO issuer and the buyer think about their benefits. The company that issues the IPO has a management team, which keeps extracting the advantages and disadvantages.

See, the benefits of companies tell them by their management team itself, but a normal person has to think a lot more.

We will talk from the perspective of a normal person. Some main benefits from the shares purchased through the IPO are as follows:

1. Opportunity to go to the stock market — By investing in an IPO, you can register your presence in the stock market. If you are thinking of investing in the stock market, then the best opportunity for you will be an IPO. But before investing in an IPO, you must pay attention to some things like- Invest in far-sighted companies, do not invest in a small company, invest in a company with good management team.

Keeping these things in mind, if you invest, then you will get a lot of benefit through IPO and through stock market.

Opportunity to profit in the benefits of the company — Actually, by buying an IPO, you enter your stake in that company, so if the company will benefit then your shareholding benefit will also increase. By the way, in most good companies, the concept of earning more in a way is implemented.

Example: If the shares purchased during the Amazon IPO are sold now, it will give more than 10 times the returns.

Opportunity to become a partner in the company — You are connected to the shares of the IPO, the root of the company. You will need to be constantly updated about the ups and downs of the company. Just like the owners and promoters of the company are connected to the fluctuations in the prices of shares.

Participation in private companies and start-ups — You have already been told that the same companies bring IPO's which are not listed in the stock market, that is, not public. Accordingly, private companies and start-ups bring their own IPO's. Therefore, by investing in these IPO's, you are involved in the journey of private and startups going public.

By the way, even before some IPO's, people are very keen. Like- Reliance Jio. Actually Mukesh Ambani has announced in the 3rd AGM meeting of Jio that he will bring the IPO of Reliance Jio and Reliance Retail in the market in the coming 5 years.

Now you will also know what are the benefits of buying an IPO? So what is the delay.

Buy an IPO, invest and make a lot of money.