Question

2 Points,

Answer 1

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

Explanation: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