Public Response to Ipo in Nepal
Chapter I
Introduction
1.1 Background
Initial public offering (IPO) refers to the first sale of company’s securities so as to collect funds from the general public. Securities are brought in the primary market to develop the liquid market of the company.
Capital is the most important factor for the development and success of an organization. Capital plays an essential role at every stage of the business. Seed money invested at the start of the business plays the vital role. For a newly established organization capital can be generated through different means. Public company collects the capital from capital market through public issue of ownership of the organization.
Capital market is the place where long term securities are traded having maturity period more than one year. The capital market mobilizes savings of individuals as investment in different securities, which are ultimately utilized for productive purposes in various sectors of the economy.
Capital market can be divided into primary market and secondary market. Primary market is the market place where first issuance of securities takes place and secondary market is the place where trading of existing issued securities takes place. Initial public offering (IPO) is the mechanism of primary market
Generally companies start their business with the small number of investors and with the expansion of the firm they would go public by selling shares. This kind of selling shares is known as initial public offerings (IPO). It includes different costs both direct and indirect. The direct costs include legal, auditing, and underwriting fees. And the indirect costs include management of time and efforts as well as dilution of selling shares at below the price prevailing in the market
People or the institutions working as the intermediary between securities issuing companies and the investors on those securities are known as investment bankers or underwriters. Company offering shares contracts
Introduction
1.1 Background
Initial public offering (IPO) refers to the first sale of company’s securities so as to collect funds from the general public. Securities are brought in the primary market to develop the liquid market of the company.
Capital is the most important factor for the development and success of an organization. Capital plays an essential role at every stage of the business. Seed money invested at the start of the business plays the vital role. For a newly established organization capital can be generated through different means. Public company collects the capital from capital market through public issue of ownership of the organization.
Capital market is the place where long term securities are traded having maturity period more than one year. The capital market mobilizes savings of individuals as investment in different securities, which are ultimately utilized for productive purposes in various sectors of the economy.
Capital market can be divided into primary market and secondary market. Primary market is the market place where first issuance of securities takes place and secondary market is the place where trading of existing issued securities takes place. Initial public offering (IPO) is the mechanism of primary market
Generally companies start their business with the small number of investors and with the expansion of the firm they would go public by selling shares. This kind of selling shares is known as initial public offerings (IPO). It includes different costs both direct and indirect. The direct costs include legal, auditing, and underwriting fees. And the indirect costs include management of time and efforts as well as dilution of selling shares at below the price prevailing in the market
People or the institutions working as the intermediary between securities issuing companies and the investors on those securities are known as investment bankers or underwriters. Company offering shares contracts