Tips for investing In IPO

Whenever any company is interested in listing its company in NSE or BSE or any other exchange they can come through initial public offering (IPO). By this they can create a great deal of interest from stock market investors. But generally question arise is that, is it actually safe to invest in IPO , Well it all depend on valuation by market experts and condition of market.

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Generally share value of any stock is FIX during the time of IPO, they can not changed till stock get listed in exchanges and available for trading. To establish its long term security a business has to go through so many steps before its IPO IPO price has to determine by stock market experts and some economist. in order maintain the balance to raise the capital require by company  and its actual value,

Stock market does not set the price of any stocks or an IPO , it all depends on demand and supply and stock market conditions. Moreover it also depends that stock market investors are ready to invest during the time of IPO or not ,will decides the share price on the first day of its listing. It is never been easy task to decides weather company will make profit from it share price from the time of listing. It all depends how it uses that money which they have got it from IPO.

In case of a large business house IPO , it turns in a an event all media , brokerage house talk about its IPO, even all investors and institution, and brokerage house run for its IPO, So in such boom price tends to move upward only for next few session after that only it comes to its right value. which decide by investors thru. demand and supply game. We have noticed such event in Reliance Power , in which all people related to stock market talked about it.

Its difficult to predict smaller company IPO, in such case it is advice able to wait for some market experts to talk about it or can take help from some Financial Advisor before any one invest in such IPO.

So in conclusion investing in IPO should be with positive approach and can put money in at a time that suits you, an should have the ability to exit at the right time, investing in an IPO need not  be a high risk move, and can give good rewards

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