Nowadays,earn money from IPO wherever you look, there is news about IPO, like if any popular company thinks of launching its IPO then immediately top youtuber makes a video about it, so let us understand today how to earn money from IPO ? Which other methods are there? But first let us understand what it means?
What does IPO mean?
The simple meaning of IPO is that when a company invests money from the public for the first time and whoever buys shares of that company for the first time, the entire money will go to the company.
I have written about IPO earlier in which I have explained what an IPO is.
I have a friend, Roshan, who asked me last week, “Friend, tell me, how does this happen when people earn money from this IPO?” That’s why I thought that I would write an article in which I would definitely give all this information.
How to earn money from IPO?
See, the first thing is that when an IPO of a company comes, the company people take the money and whoever takes the IPO, that money is invested in a way. If we take an example, then understand that when you take an IPO of a company, it will be like this. You will invest in IPO by paying money and you will get some share.
Now whatever money you invested in buying that lot of shares in IPO, that money will be taken away by the company, so what did you get in this situation?
You got only share but here you have to understand that how will you earn money from IPO? So understand again with a different example, suppose that according to the IPO you took, the price of 1 share is Rs 100 and when the time of IPO is over, the IPO will be allotted, after this the share will be listed in the share market for buy and sell. And as soon as it is listed, its share price increases a lot, which is much higher than what is usually the price on the first day.
Now suppose that at the time of IPO the price of 1 share was ₹ 100 but now in the share market its price becomes ₹ 150 in the very first day, then how much will be the profit? ( Upcoming IPO List 2021 )
In this way, many people nowadays earn a lot of money from IPO in short term and you can also do this work. If you have any stock broker app, you can also apply for new IPO through it, there will be no problem.