Initial public offering (IPO Part I)
IPO Part I IPO is a very popular concept now a day. we need to understand how this process goes. As we know companies always need money for expansion and to meet the needs of an evolving business. when it became nearly impossible for them to raise money from loans from banks for the long term then companies will always go for financial markets to raise money. in this case, the company can raise money from the primary market or from the Secondary market. when the company is new in the market then they have to go for primary market In the primary market, we can directly buy a share from the company so we don’t need to pay brokerages for primary market transactions as only the buyer and company are involved in the transaction. To list this share in the market. The company first needs to find out investment banker. some times more than one bank will be involved in this process. but one bank act as a lead bank and the other as an assist banker. this banker act as an underwriter me...