GREEN EARTH

PRIMARY MARKET

Primary Market

Terminology

Classification of issue of shares

Initial Public Offering (IPO)

Advantage of IPO

Disadvantage of IPO

Parties to IPO

Who decides the price of an issue?

Further Public Offering

Rights Issue

Private Placement / Preferential Issue

Issue Price

Market Capitalization

Difference between Public Issue & Private Placement Public Issue When issue made for general public and any investor at large. As per companies act, 1956, an issue becomes public when result it allotment to 50 persons or more. Private Placement Issue is made to a select set of people.

An allotment is made to less than 50 persons.

Book Building

Cut Off Price

Floor Price

Price Band

Documents in IPO

Draft Offer Document

Abridged Prospectus

Lock in

Listing of Securities

Listing Agreement

Delisting of Securities

How to apply in IPOs ?