Monthly archive: November, 2008

What is a “pre-ipo” opportunity?

IPO
Garnett asks:

I recently came across “pre-ipo” opportunity while job searching. What does this mean?

Would you recommend that I apply for this or not? How is it different from other opportunities?

Is Share Investing Difficult?

IPO
Margret asks:

Let us begin by understanding what shares are. Shares are a part ownership of a public company like Microsoft, Coca Cola and the like. Any public company needs investment to begin operations and then to continue those operations. This investment is generally huge. For that reason, the company raises capital by announcing its public issue shares in the market. This is called as a Initial Public Offering (popularly called as IPO). Each share has a particular price that it is offered to the public and generally anyone is free to buy any amount of shares. So, if you buy a hundred shares in a company, in return you will get a share certificate as proof of ownership and you will have ownership rights within the company such as an invitation to the company Annual General Meeeting. You will get voting rights within the company, but your ownership will be restricted to one hundred shares. If there are a thousand shares issued by the company and you own one hundred of them, then you own 10% of the company.

The investment in shares is actually two fold. The first is when you buy the shares, you have invested that much capital in the company. As the company functions, it might make profits or losses. If it starts to make a profit, your shares become more valuable because the public want to buy into this company. The second is in the form of a dividend payment. If you kept the shares, particularly longerthan six months you also receive what is called a dividend payment. A Dividend payment is typically what a company gives to its shareholders when the company has made a profit.

You are not bound to the company forever after buying a portion of it. When the share prices rise, you are free to sell off those shares and make a neat profit in the process. Whereas, if the share prices fall, you have the option of either selling the shares with a loss for yourself and trying your luck with some other company, or to wait and watch if the company fortunes improve in the near future.

Wise old men would say that this is indeed a form of gambling. But it is not wholly a gamble, whatever the sages would say. The reason is that stock investing is usually done after a careful research of market trends and there is a innate talent in some people to sense out the investments that would pay off richly in the future. The likes of Warren Buffet and George Soros are examples of people who have excelled at investing in shares. It is not all chance; there are predictions and strategies that can help an investor make the most of their investments.

People reckon that there is a magic to what stock brokers do and believe that they will never possess the skills of the stock brokers. Yet stock brokers weren’t always stock brokers. This means that if they can learn about stocks, why couldn’t you?



China Corporate Finance, China Ipos, China Spac, China Reverse Merger

IPO
Melida asks:

SPACs, Special Purpose Acquisition Companies, are investments vehicles that allow public investors to invest in areas sought by private equity firms. SPACs are shell or blank-check companies that have no operations but that go public with the intention of merging with or acquiring a company with the proceeds of an initial public offering. A SPAC is similar to a reverse merger. However, unlike reverse mergers, SPACs come with a clean public shell company, better economics for the management teams and sponsors, certainty of financing/growth capital in place, a built-in institutional investor base and an experienced management team. SPACs are set up with a clean slate where the management team searches for a target to acquire. This is contrary to pre-existing companies in reverse mergers.

 

SPACs raise blind pool money (most of which goes into a trust) from the public for an unspecified merger, sometimes in a targeted industry. The SPAC raises money to go public first, then looks for a private company to buy usually in the high-tech sector. SPACs serve an important role in bringing new technology to the market.

 

Dynasty also makes available access to exchanges in Continental Europe, Latin America, the United Kingdom, Canada and parts of the Asia-Pacific region. Clients can trade foreign securities in either US dollars or a variety of foreign currencies including Euros, Canadian Dollars, Swiss Francs, and British Pounds Sterling.

 

A special purpose acquisition corporation, commonly known as a “SPAC,” and formally a “development stage company,” is generally incorporated with the primary objective of raising funds through a public offering of its securities primarily for purpose of acquiring one or more operating companies. Please visit online http://www.dynastyresources.net in NewYork city.



Why do companies go out of their way to make sure their stock price goes up after IPO?

IPO
Pearlie asks:

I mean it will be good for their second public offering, more attractive stock options for the employees, be able to sell more shares of non-outstanding ones, and what else am I missing? Thanks!

Does Webdunia.com plan for an IPO?

IPO
Lizabeth asks:

Webdunia has added more languages and more sections to their portal, www.webdunia.com. Is it true that they are aiming at an IPO soon?

How can I subscribe to an IPO?

IPO
Julee asks:

With so much hype around the BlackStone IPO, I was wondering how I could buy shares of an IPO before they start being trading on the market. I remember the Google IPO being priced in the 80s and as soon as trading started it’s price jumped to about $108 or so. Similarly BlackStone’s priced at $31 but the as soon as the market opens the price might change. How could I have gotten it for $31?

where i could got Reliance Power IPO share application form in delhi?

IPO
Ellie asks:

Reliance Power IPO share

If any person want to start a company, then can he raise his shares in markets and if he can what’s IPO?

IPO
Ghislaine asks:

As we know , a company can offer IPO (initial public offer)only if that company is a public limited company and if a person starts a company then that company will be a private company then “How can he offer his shares in market”. Basically I am a engineering student, but very interested in marketing , is there any website where can gain such basic knowledge

what is the function of registars and banckers who participate in an ipo?

IPO
Wilhelmina asks:

related to stock market

Anyone know of a good web site that lists when IPO’s are scheduled to go public?

IPO
Kesha asks:

Thanks, Adam… Just what I was looking for…

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