Learn Economics by Dr. Swati Gupta

What is an IPO in the Share Market? An Initial Public Offering (IPO)  is the process by which a private company offers its shares to the public for the first time. For investors, an IPO is the first chance to purchase shares of the company. When the IPO are listed on a stock exchange, it becomes available for trading in the open market. Key Aspects of an IPO: Raising Capital:   A company decides to launch an IPO  to raise capital. The funds generated from the sale of shares in the IPO are typically used for business expansion, paying off debts, or investing in new projects. Ownership Stake:   The company allows outside investors to become partial owners by offering shares to the public. It simply means that the ownership of the company is divided into shares, and the investors can buy and sell these shares on the stock exchange. Why Do Companies Go Public? Raise Capital:  When companies need funds to grow, they often turn to public offerings, such as a...

The key principles  Investors  should remember before Investing Investing in the stock market can be rewarding, but it requires careful preparation and strategy. Here’s the few points, a investor must remember: Preparation Steps Understand Your Financial Situation: A investor must ensure about the  disposable income for investment after covering essential expenses and building an emergency fund (at least, six months of expenses).  He should define his investment objectives (e.g., retirement, buying a house, or wealth accumulation) and time horizon. Educate Yourself: He must learn  the basics of the stock market, including how it works, key financial metrics, and market terminology (e.g., P/E ratio, dividends, market cap). and also should understand different types of investments (stocks, ETFs, mutual funds, etc.). Create a Strategy:   He must know his ability to withstand market volatility and risk tolerance. This depends on t...

Share Market, Main components and Functions of the Stock Market The share market or stock market plays a important role in the economy. It allows companies to raise capital and provides investment opportunities to individuals. What is the Share Market? The share market is a place where the shares or stocks of companies are bought and sold. It is a financial market where by purchasing shares, investors gain partial ownership of the company. The stock market is also known as a stock exchange.  The main purpose of the stock market is to provide  an opportunity to companies  to raise capital and give  fair chance to the investors to earn profits from their investments. It is a liquid market, where investors can easily buy and sell their shares and get their money. The stock market has two main components: Primary Market : It is the market where companies issue shares for the first time through Initial Public Offerings (IPOs) and allows businesses to raise capital for gro...