What is IPO and how to apply?

IPO (Initial Public Offering)
What is IPO?
This is a Process of listing of any company on exchange.
Price of the share is decided by company management as per the guideline of SEBI. 
(SEBI is the govt. body which regulate stock exchanges and companies listed on exchanges)
people will apply in this IPO if they are interested and subscription of IPO will end in 3 days. after some days (previously decided date) listing of that company will done and then share will trade in secondary market after listing.again demand and supply theory will work here if demand of IPO is more then allotted shares than listed price will increase and if supply is more then demand then prise of share will decrease. we will discuss on IPO in detail separately. 

How to apply in IPO?

Simply you just have a Demat AC where your allotted stock will store and Trading AC with you can buy or sell a shares. You can open your Demat and  Trading AC with banks or brokerage companies.

How to check quality of that company?

When company wants to listed in exchange they should provide financial details of their company to the SEBI. and this detail will publish on website of SEBI. So you can check the fundamentals of the company. And another way is gray market. If the company's fundamentals are good and price is also attractive then more people will attract towards the IPO. It will result oversubscribtion for ex- if there is 20000 lots but buyers are 40000 then this ipo Subscribe 2 times that means out of 2 only one can get shares. There is the reason for black marketing (but here called gray market) obviously this process is illegal but you can predict by knowing demand of share price in gray market. In gray market you may get more price than company decide in ipo that is called premium people are ready to pay more premium for good company and vice-versa price will discounted for company that might have not good fundamentals.

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