NISM Series XV : Research Analyst Certification Exam Notes
Page 12 Of 62
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Secondary Market facilitates trades in already-issued securities, thereby enabling investors to exit from an investment or new investors to buy the already existing securities.
Public issue- Securities are issued to the members of the public, and anyone eligible to invest can participate in the issue. This is primarily a retail issue of securities.
Initial Public Offer (IPO) of shares or IPO is the first sale of a corporate's common shares to investors at large. The main purpose of an IPO is to raise equity capital for further growth of the business.
Follow on Public Offer (FPO) - When an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, it is called FPO.
When a company wants additional capital for growth or desires to redo its capital structure by retiring debt, it raises equity capital through a fresh issue of capital in a follow-on public offer.
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