Equity share capital has distinct features which define its risk and return. For the investors, the risk and return in the equity investment determine whether such investment is appropriate for their needs. Equity shareholders are owners of the company, but their obligation to the company is limited to the amount they agree to contribute as capital. Shareholders are ranked last both for profit sharing as well claiming a share of the companyâ€™s assets
Investment in equity shares does not come with a guarantee of income or security for the investor. The income to the investor from equity is in the form of dividends and capital appreciation that can be gained if the equity shares quote at prices that are higher than the purchase price, in the equity market. Neither of these is guaranteed by the company or any other entity.
Artham Solutions serves as an Equity Broker in Surat through its well established affiliation with Indiaâ€™s leading online share trading company, Motilal Oswal and is providing Portfolio Advisory services through Motilal Oswal.
(Initial Public Offering) is the first sale of stock by the company to public. IPOs are often issued by small, young companies seeking capital to expand. However the large privately owned companies looking to become publicly traded can also initiate an IPO. After IPO, the company's shares are traded in an open market.
A Follow-on Public Offer is issuing of new shares by a listed company to the investors or the existing shareholders, usually the promoters. In order to diversify the equity base, companies come up with an FPO. The process of FPO is carried out after the company has undertaken an IPO and decides to make more of its shares available to the public or to raise capital to expand or pay off debt.
The Secondary Market is a financial market, wherein previously issued financial instruments such as stock, bonds, options, and futures are bought and sold. The stocks are sold on the primary market, when they are first issued and then are traded in the secondary market.