Financial literacy and more
A follow on public offer is known as a FPO is a further issue of shares by a company to its investors.
This is an issue for shares when the existing shares are already listed on the stock exchanges.
The price for such an issue thus has to be linked to the traded price in the market,
This can be used by companies to raise more capital for its needs.
It can also be used by existing investors to exit their holdings.
Equity shares are the shares that provide ownership for an investor in a company.
There is equity capital that a company is authorised to issue and for this shares are given to investors.
These are equity shares which are the shares that are listed on a stock exchange.
These pay dividends only if the company makes a profit.
The holders of the equity shares will receive some amounts at the very end if there is something left for them at the time of the closing down of the company.
A company that does not have its shares listed on a stock exchange is an unlisted company.
An investor can buy shares for such a company from other shareholders or through a new issue.
There is no visible price which gives an idea about the value of the investment.
There is also a lower amount of liquidity in such shares as a buyer or seller needs to be found to transact.
Many investors buy shares in unlisted companies wanting to profit from it when these companies get listed on a stock exchange at some later date.
A public limited company whose shares are traded on a stock exchange is called a listed company,
The process of having the shares traded is known as listing on a stock exchange.
The benefit for an investor is that they can transact through their brokers on the stock exchange.
This gives a better liquidity to the investor for their money.
The price of the shares are also visible at various places when a company is listed.