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mojhsa [17]
4 years ago
5

2 Points,

History
1 answer:
Len [333]4 years ago
4 0

Answer:

Under Companies act 1933 a company make it's first offer of securities through IPO that is initial public offering.There are 4 general steps which a company go through to make an initial public offering

<u>Explanation:</u>IPO is a way of raising money  by changing a company from private company into a publicly listed company.Thus IPO means going public.

First step-Disclosure document is drawn up first of all.These documents are drawn by the lawyers of the company to disclose the financial position of the company.

Second step-Prospectus is filed with securities and exchange board of india.

Third step-Banks recruit the brokers to sell the stock.An advertising campaign is conducted to advertise the company to stock brokers.

Last step-Stock is sold.The stock of company is sold to the public in a stock exchange

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