Abstract
In present scenario IPO’s are the best way of investment for the good returns as well. These IPO’s totally depends on market. Investment in IPO’s may contain risk factor and may be harmful in terms of loss. So, in this paper the risk assessment and risk factors associated with IPO’s should be described so that one can get to know about theses risk and their impact on IPO’s. This paper will also help researcher for their study related IPO and their associated risk. In this paper author described introduction to IPO and what kind of risk can be there investing in IPO.
Highlights
The initial public offering of equity shares or changeable securities by a company, which is followed by the list of a company’s shares on a stock exchange, is known as an ‘Initial Public Offering’
The public offering is of two type primary offering and secondary offering where primary offering means that new shares are to be sold and in an secondary offering existing shares held by VC and other are to be sold
The risk assessment explains that there are three types of risk associated with an IPO that is business risk, financial risk and market risk
Summary
The initial public offering of equity shares or changeable securities by a company, which is followed by the list of a company’s shares on a stock exchange, is known as an ‘Initial Public Offering’. In further words, it refers to the primary sale of a company’s regular shares to investors on a community stock exchange, with a meaning to raise new capital. A company going for an IPO stands to make a lot of wealth from the sale of its shares which it tries to predict how to use for additional extension and development. The company is not required to pay back the capital and the new shareholders get a right to future profits distributed by the company
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