Make Profit by Investing into New IPO Online

The concept of trading in shares means the buying or selling of shares through the two big stock exchanges in India, the National Stock Exchange and the Bombay Stock Exchange. To do this you need to use the services of a stockbroker who buys or sells the shares of specific companies based on the client’s instructions.

Dematerialized Shares

Online share trading uses specialized software platforms which facilitate trading in different stocks, commodities, and mutual fund investments. These facilities are provided by dedicated online brokers whose clients are able to use their platform to invest in stocks and shares as they deem fit. Today, the need to trade in physical shares is over, because most of the trading is done using dematerialized shares or demat shares; to enter this market a prospective client will need to have a free demat account which is provided by registered online brokers, if clients meet the requirements set up by the regulatory bodies. Currently, shares are not physically transferred to the client’s name, it is done on the spot and once the payment is made, an acknowledgment of the deal is sent which is all the proof needed that a transaction was done.

Initial Public Offering

The move to demat shares has been on the cards for a long time, and now with the improvement of technology and provisions for tightening rules and regulations, bodies like the Securities & Exchange Board of India or SEBI and the Reserve Bank of India can better monitor and keep track of the huge number of trades taking place each and every day. Currently, one of the best investment vehicles has been the initial public offer or IPO and secondary stock offerings. If the client has done his research and picked the right company, then buying the new IPO could turn out to be extremely profitable, especially if the stock soars soon after the initial offering. However, not every IPO has been successful, and there have been hundreds of cases of IPO’s shooting up only to come crashing down by the end of the trading day.

Background Research

Through the research, information gathering techniques, and experience, many online brokers inform their clients and subscribers about the different IPOs coming up, and their recommendations. It is up to the client to do further research to decide whether he wishes to go with the new IPO or leave it for another day. The comprehensive research that is done by the online brokerage firm is a team effort of many professionals who study the company minutely before putting down their recommendations for the clients. For big-name companies who are coming out with an IPO, the rush to get their stocks is sometimes so huge, that many investors do not get anything and may have to buy the stocks at a later date at a much higher price.

About Author:

Author is a contributor writer and engaged with leading online trading firm in India. He also would like to share the detailed information about New IPO and free demat account opening.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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