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| finance and shares and IPO |
The article with the title Finance as well as Tips on buying shares of Prime and how to grab shares with right way explaining about how to buy shares in primary market is one way to become the owner of the company without having to bother to be employees.
if you want to play stock, here's an easy way to make a profit : try buying a fresh stake as he when the new shares and issued, for example : if you buy shares of a company famous in the stock exchange at a price of $2 per sheet. minimum purchase of 500 shares (1 lot), that is, the necessary money 100 dollars.
but, there is an easier way to buy these stocks, where a company's first entry into the stock market by rolling out public offering shares to the public, the term prime is the initial public offering (IPO), then if you buy stock with such a system, then in two years, you investment has already doubled nominal profits obtained is increasingly bloated if the number of shares bought a lot more. because it is a lot of chasing stocks IPO or stock of prime, they willingly line up funding and willingly rushed just to grab shares of the first-hand.
typically, the companion that is already stable and transparent choose cheap based on will become a public company, the company will sell some of its shares to the general public and the records of its shares on the stock exchange, there are a variety of reasons companies choose go public.
one, in order to make the company more transparent because it is owned by the public, there are also companies who choose to go public because it wanted to find a cheap fund from the community to the development of business, pack, or for the payment of debts.
Please Read Also About Finance - Investment Money Tips To Get Rich By Designer Toys
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Fortunately, It Can Be Easily Achieved.
this is learning about the benefits of stock investment two prime are :
first : profit about the benefits of stock price changes
two : dividends distribution or part of the net profits of companies can be accepted each year.
Tips On Buying Shares Of Prime Or IPO
1. Identify
each company will publish a brief prospectus in newspapers before the IPO, the contents about the company history, what the meaning the company do IPO, IPO proceeds use of funds, and the financial statements of the company for the last three years, of this prospectus, it will be known track record as well as the prospects of the company.
2. Not Spend Of Debt.
preferably, do not buy the stocks of companies tat will use IPO funds to pay debt, choose a company who use the IPO funds to finance business development plan, so our money can be well developed.
3. Who Is The "wedding organized"
find out company underwriter to companies that will go public, underwriter assignment similar to the wedding organizer, that handle all his affairs until detail of the IPO to initial stock was listed on the stock exchange.
4 . Surgical Abdominal Contents Company
before the IPO, the company is obliged or have staged public exposure, the big event similar to this press conference is a great opportunity to dissect the entrails of that company, then you should ask them about when the underwriter the event will be held.
5. Starting Order
after the public have assisted companies underwriter usually roll out the lifetime of a quote, that's when you can buy shares of prime, bookings and purchases of shares to the underwriters and agents of the seller who has already been appointed (co.underwriter).
6. Price Estimates
do the rulers stock price, high price is not necessarily the expensive, in contrast, low prices are not always cheap. one of the formula : is the ratio of a stock's price divided the company's net income, or price to earning ratio (PER), compare the ratio obtained by another company that already before entering the stock exchange and nice.
7. Get a Discount
usually companies and underwriters are always give discounted prices when the IPO.
8. Sell Only If The Share Price Has Gone Up.
almost all of the shares of the IPO in the stock exchange price of the shares of grow up n the first day of trade in the secondary market, if you belong to the aggressive type who want to earn profit the through capital gains, so buy shares of the IPO in the stock market, then you can sell the stock when it's been "acting" in the secondary market.
9. Save Only
if you belong to the conservative investor and have a long-term investment horizon. please feel free to continue to keep the stock IPO up to years, there would be a loss, since the company is stable and healthy companies, stock prices have gone up 100 percent in the past two to know.
Glossary Of Stock
Capital Gains
investment profit in the form of capital assets, such as stock,bonds, or real estate, when the price exceeds the price when buying.
Dividends
the division of profits of the company to shareholders based on the portion of shares owned.
Primary Market
the market place of the company that publishes the new securities to increase the company's capital.
Secondary Market
financial market are used as a place for trading stocks of companies that have been published to increase the company's capital.
Prospectus
a document that gives information as well as a description of new securities issuance and its publishing company.
Underwriter
underwriter is the financial institution that is not use affiliate with the bank.
Oversubscribed
is oversubscribed when the bidding process takes place.
Dividends
the division of profits of the company to shareholders based on the portion of shares owned.
Primary Market
the market place of the company that publishes the new securities to increase the company's capital.
Secondary Market
financial market are used as a place for trading stocks of companies that have been published to increase the company's capital.
Prospectus
a document that gives information as well as a description of new securities issuance and its publishing company.
Underwriter
underwriter is the financial institution that is not use affiliate with the bank.
Oversubscribed
is oversubscribed when the bidding process takes place.
