What Is An IPO? Should You Invest Or Not?

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Pranjal Kamra answers your question right here!

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38 COMMENTS

  1. But Shares are prone to market fluctuations of demand and supply including…what if the market value of the share goes down at a time…

    To avoid that we duly believe in call and put options when investing in derivatives to lock a given price by paying the premium amount.

    So in case of volatility we lose nothing but the premium amount.

    But in IPO it's mostly done in the private market for the first time for the general public to buy the shares.
    Either through the booking method or assigned prize.

    So just to say if later the value goes down then the shares won't be attractive to the investors.(Speculative motive theory of keynesian theory of demand and supply).

  2. Hi I'm from tamilnadu totally confused why you guys always have habit of starting in english then hindi again english mixing both and totally confusing people who don't know hindi . Sharing something good turning out to be a piece of waste for few people 😏

  3. everything is highly overvalued in the listed market as compared to the unlisted market. So, considering an ipo investment at overvaluation is not that bad, as it will eventually be highly overvalued after listing.
    But you must consider your own research first, that is the ipo issue is not coming at a highly overvalued price itself.

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