What is an IPO?
A company may request a loan to expand that company now; bank loans are given with the help of securities but only for certain limits. They do not provide loans predicting the future. So this company solicits the public for investment to expand the company. Like RBI is the head of banks, SEBI is in charge of stock markets. SEBI offers public issues based on the financial statement of that company
Based on the company’s credibility, awareness, and liquidity, investors invest in that company. The shares of this company get listed in the exchange. After which you can start trading with the help of a broker’s platform like Enrich Money
Now you may not be a trader or an investor, but when you buy a share from a company, you become a shareholder of that company. Owning stock means owning a piece of a company; remember, these funds can grow faster than cash in your savings account. As a co-owner, you are entitled to a share of the profits and assets of that company.
To know more about Equity share, Refer to: What is IPO in Share Market?
What Is An Equity Share?
What is the profit to an equity shareholder if the company gets profit? From the company’s profit, the shareholder receives a bonus or dividend. When the company grows, the price per share increases, eventually leading to a rise in your net worth. But if the company incurs a loss, its stock price also falls, and your net worth will also go down.
