ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An IPO occurs when a private company sells shares of stock to the public for the first time, a process known as “going public.” The process, including the original price of the new shares, is set by a designated investment bank, hired by the company to do the initial underwriting for a particular stock.

Detailed explanation-2: -In a primary market, securities are created for the first time for investors to purchase. New securities are issued in this market through a stock exchange, enabling the government as well as companies to raise capital.

Detailed explanation-3: -The primary market is where securities are created, while the secondary market is where those securities are traded by investors. In the primary market, companies sell new stocks and bonds to the public for the first time, such as with an initial public offering (IPO).

Detailed explanation-4: -The primary market is the place where securities are created. Companies float (in finance lingo) new stocks and bonds in this market for the first time. In the primary market, companies and government entities sell new shares, bonds, notes, and bills in order to finance business improvements and expansions.

Detailed explanation-5: -Initial Public Offer These securities are traded previously or offered for sale to the general public. After the process of listing, the company’s share is traded on the stock exchange. The investor can buy and sell securities after listing in the secondary market.