How to apply for an IPO

Initial public offer (IPO) is made through Fixed Price process or Book building process or combination of both.

  • In fixed price issue you know the price at which stocks would be allotted to you and payment is made at the time of applying.
  • In book building process you know a price range at which stocks would be given to you (eg. 300 -350) and not the exact price.

To apply for an IPO,there are two options available now a days

  • Offine
  • Online

Offline method to apply for an IPO

You can get the application form for the IPO from different investment consulatant,brokers,banks or some other sources.You need to fill the application from and submit the money at the designated bank.In the offline option if the stocks are not allotted to you then a check would be sent to your address as the refund money. Continue reading

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What is Credit Rating

In simpler terms we can define Credit Rating of an individual or an organization as their credit worthiness.Credit rating tries to evaluate the risk factor associated with trusting that individual or organization with your money.

Credit ratings are determined by the credit rating agencies which have different methods to determine the credit rating.A higher credit rating indicates that there is less risk associated with that specific investment option.As the rating goes down the risk factor increases. Continue reading

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Gold ETF Explained

Gold ETF stands for gold exchange traded funds and these funds aim to track the price of Gold.Gold ETF are traded in stock exchange like usual stocks and generally 1 unit of Gold ETF represents one gm of Gold.

Owning the units of Gold ETF is almost same as holding that amount of actual gold.So If you have 10 units of Gold ETF,that is same as holding 10 gms of gold with you.

There are various advantages associated with holding gold ETF instead of actual gold.

  • Its Virtual – In case of gold ETF the gold is held virtually in your Demat account and you do not have to worry about it being stolen or lost.
  • Its Pure – There is no risk of getting cheated and being sold impure gold unlike the case with actual gold.If you are holding 10 units of gold ETF Continue reading
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