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प्रश्न
Initial Public Offer and Further Public Offer
उत्तर
| Initial Public Offer |
Further Public Offer |
|
1. Meaning: IPO refers to an offer of securities by an unlisted Public Company to the public for the first time. |
FPO means an offer of securities by a listed Public Company to the public to raise subsequent capital. |
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2. Type of issuer company: It is issued by an unlisted Public Company. |
It is issued by a listed Public Company. |
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3. When issued: It is usually issued by an existing company which wants to raise capital from the public for the first time. |
It is usually issued by a listed Public company when it wants to raise further capital from the public. |
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4. Order of issue: IPO proceeds FPO. IPO is the first time sale of shares to the public. |
FPO is always done after IPO. FPO is the second or subsequent sale of shares to the public. |
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5. Listing: Company has to get itself listed for the first time before issuing IPO. |
Company making an FPO is already a listed company. |
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6. Risk: It is very risky for the investor as he cannot predict the company's performance. |
It is less risky for the investor as he has an idea of the company's past performance and can judge its future performance. |
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संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
Bonus shares are issued free of cost to ______
Write a word or a term or a phrase which can substitute the following statement.
Subsequent issue of shares after an IPO.
State whether the following statement is true or false.
Sweat Equity shares are offered to Directors or employees of a company.
Answer in one sentence.
What is meant by private placement?
Answer in one sentence.
To whom is Sweat Equity Shares offered by a company?
Answer in one sentence.
To whom can a company issue Bonus Shares?
Answer in one sentence.
Name the capital which is mentioned in the capital clause of Memorandum of Association.
Correct the underlined word and rewrite the following sentence:
FPO refers to offering of shares to the public for the first time.
Explain the following term/concept.
Initial Public Offer
Explain the following term/concept.
Further Public Offer
Explain the following term/concept.
Rights Issue
Explain the following term/concept.
Private placement
Study the following case/situation and express your opinion.
Eva Ltd. Company's capital structure is made up of 1,00,000 Equity shares having face value of ₹ 10 each. The company has offered to the public 40,000 equity shares and out of this, the public has subscribed for 30,000 equity shares. State the following in ₹.
- Authorised capital
- Subscribed capital
- Issued capital
Study the following case/situation and express your opinion.
TRI Ltd. Company is newly incorporated public company and wants to raise capital by selling Equity shares to the public. The Board of Directors are considering various options for this. Advise the Board on the following matters :
- What should the company offer - IPO or FPO?
- Can the company offer Bonus Shares to raise its capital?
- Can the company enter into Underwriting Agreement?
Explain Employee Stock Option Scheme.
Answer the following question.
Explain the two methods a company can use to make its public offer of shares.
Write a word or a term or a phrase which can substitute the following statements.
Highest bid price in Book Building method.
Find the odd one.
Give one word or phrase for the following sentence:
Process of offering shares of the company to the public for the first time.
