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3.7 Issue Price

Hanumant Dhokle / 22-Feb, 2021

/ Categories: Learning, Fundamental, CSMER, Primary Markets : IPO

DIFFERENT ISSUE METHODS

The value of the company is reflected in the price of the shares of the company at the time of the public issue. The price per share of the company is fixed based on the professional business valuation of the company by the valuation experts and proposed to the regulator. If the regulator gives a consent on the price, then the company can go ahead with the price and if not it has to be revised.

While fixing the price for public issues in India companies follow two methods:

Normal price
Book-building

The price of the share includes both face value and the premium, if any. In both the above cases, the issuing company should get consent from the regulator (SEBI).

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Equity Research

Chapter 1 : Basics of Investment

1.1 What Is Investment?

1.2 Investment Environment

1.3 Nature Of Investments

1.4 Why Investment?

1.5 Risk & Return

1.6 Understanding Terms

1.7 Income , Expenses, Borrowing And Investments

1.8 Investment ,Speculation And Gambling

1.9 Methods Of Investing

1.10 Investment Alternatives

1.11 Long-term Financial Instruments

1.12 Short Term Financial Instruments

1.13 Financial Assets Vs Real Assets

1.14 Factors Influencing Investment Decisions

1.15 Investment Process

Chapter 2 : All about Equity Share - Introduction

2.1 How Shares Come Into Being

2.2 How do I benefit by Holding a Share?

2.3 Share Certificate

2.4 Face Value And Market Value

2.5 Types of Shares

2.6 Categories of Shares

2.7 Why Do We Invest In Shares?

2.8 Company's Funding Routes

2.9 How Are The Stock Prices Decided?

Chapter 3 : Primary Markets : IPO - Introduction

3.1 What is Primary Market?

3.2 Who Can Issue Shares?

3.3 Types Of Public Issue of Shares

3.4 Investor Category In IPO

3.5 Requirement To Participate In Public Issues

3.6 Important Associates In Public Issue

3.7 Issue Price

3.8 What is Book Building?

3.9 Process Of Public Issue

3.10 How Will People Apply For An IPO?

3.11 Allotment Of Shares

3.12 Methods Of Pricing The Issue

3.13 Strategies For Investments In The Primary Markets

3.14 Tips For The Investors

Chapter 4 : Stock Markets : Introduction

4.1 What Is A Stock Market?

4.2 Products Dealt In The Secondary Markets

4.3 Types Of Stock Markets

4.4 History of stock markets

4.5 What is a stock exchange?

4.6 The Bombay Stock Exchange (BSE)

4.7 The National Stock Exchange (NSE)

4.8 Price Trends Or Index

4.12 What is Bulls And Bears?

Chapter 5 : Trading Clearing & Settlement : Introduction

5.1 Role of brokers & sub-brokers in trading

5.2 Order system

5.3 How are orders executed?

5.4 Order matching priorities

5.5 Types of orders

5.6 Trading cycles

5.7 Settlement agencies

5.8 Transaction cycles

5.9 Pay-in and pay out of funds

5.10 Securities movement

5.11 Value at risk

5.12 Mark to Market

5.13 Few points one must know

5.14 International Securities Identification Number

Chapter 6 : Introduction to analysis

6.1 Why analysis ?

6.2 What is fundamental analysis?

6.3 Why Fundamental Analysis?

6.4 Components Of Fundamental Analysis

6.5 What is Technical Analysis ?

6.6 Difference between technical analysis & fundamental analysis

6.7 Concept of Intrinsic Value

6.8 Top Down Approach and Bottom Up Approach

6.9 Value of a Combined Method

Chapter 7 : Economic Analysis : Introduction

7.1 How do you analyse an economy?

7.2 Impact of Economic Cycle

7.3 Economic Indicators & their Relevance

7.4 Analysing Economy through Indicators

7.5 Sample Indicators

7.6 Economic Policies

Chapter 8 : Industry Analysis : Introduction

8.1 What is an industry?

8.2 Why Industry Analysis ?

8.3 Analysing Industry : Life Cycle

8.4 Relevance of industry life cycle

8.5 Analysing Industry : Porter's five factor model

8.6 Swot Analysis

8.7 How do you analyse industry structure?

8.8 Factors affecting different industries

8.9 Don't over complicate

Chapter 9 : Company Analysis : Introduction

9.1 Income Statement

9.2 Key Concepts

9.3 Balance Sheet

9.4 Main Components of Balance Sheet

9.5 Cash Flow Statement

9.6 Three Sections of the Cash FLow

9.7 Yardstick for analyzing a company

9.8 Understanding ratio analysis

9.9 Stock market related ratios

9.10 P/E ratio (Price-earnings ratio)

9.11 Ratios & market prices

9.12 Profitability ratios

9.13 Liquidity ratios

9.14 Capital structure ratios

9.15 Activity Ratios

9.16 Application of ratios

9.17 Calculating - Intrinsic value

9.18 DCF (discounted cash flow)

9.19 Other stock valuation methods

9.20 Become a sucessful investor

Chapter 10 : Technical Analysis : Introduction

10.1 How did technical analysis evolved?

10.2 What is the rational behind technical analysis?

10.3 What is Dow Theory?

10.5 Market Information

10.6 Predicting the market

10.7 Predicting the stock

10.8 Interpreting chart patterns

10.9 Moving averages

10.10 MACD indicator

10.11 CAN SLIM - Stock picking strategy

10.12 Technical analysis or fundamental analysis

Chapter 11 : Investing In Stocks : Introduction

11.1 Want to trade ? Go for it

11.2 Costs in trading

11.3 Risks in stock investments

11.4 Beta & risk

11.5 Systematic Investment Plan (SIP)

11.6 Investment styles

11.7 Basic tips on investment

Chapter 12 : Investors' Behavior : Introduction

12.1 Investor's psychology

12.2 What is fear & panic?

12.3 Understanding investor behaviour

12.4 Herd mentality

12.5 Risk Aversion

12.6 Fear & greed : how to control them ?

Chapter 13 - Online Trading : Introduction

13.1 Online trading system at exchange level

13.2 Functioning of trading networks

13.3 Market phases

13.4 Circuit breakers

13.5 Online trading system at investor level

13.6 Advantages/Disadvantages of online trading

13.7 Online share trading : Step by step procedures

13.8 Online trading : New experience

13.9 Important checklist for online trading

Chapter 14 - Short Term Trading : Introduction

14.1 Short- term trading

14.2 Basics of short-term trading

14.4 Intraday trading strategies

14.5 Margin trading

14.6 Risks in day trading

14.7 New experience - algorithmic trading

14.8 Caution day trading

14.9 Short selling

14.10 SEBI - Broad framework for short selling

14.11 Short selling transactions

14.13 Mobile trading

Chapter 15 - Portfolio Management : Introduction

15.2 Measuring the beta

15.3 Phases of portfolio management

15.4 Overview of modern portfolio theory

15.5 Capital asset pricing model (CAPM)

15.6 CAPM formula

15.7 Asset allocation

15.8 Constructing good portfolio

15.9 Return considerations of portfolio

Chapter 16 - Mutual Funds

16.1 What is a mutual fund?

16.2 History of mutual funds in India

16.3 Appraising a mutual fund

16.4 Mutual funds - why should you invest?

16.5 Types of mutual fund schemes

16.6 Organization of a mutual fund

16.7 How to invest in mutual fund?

16.9 Exchange traded funds (ETFs)

16.10 Picking the right mutual fund

Chapter 17 - Equity Derivatives : Introduction

17.1 Financial derivatives

17.2 Types of financial derivatives

17.3 Forward contracts

17.5 Futures payoff

17.6 Key concepts

17.7 Stock index futures

17.9 Participants in the options market

17.10 Key concepts

17.11 Pay-offs of options

17.12 Options strategies

17.13 Basic spreads

17.14 Other derivatives instruments

Chapter 18 - Introduction to Commodities And Commodity Trading

18.1 What are commodities?

18.2 History of commodity market in India

18.3 Commodity exchanges in India

18.4 Commodities traded in India

18.5 Commodities as alternative asset

18.6 Commodity as an investment opportunity

18.7 How to invest in commodities?

18.8 What is unique about commodities?

18.9 How commodity market is organised in India?

18.10 Participants in these markets

18.11 Margins for trading in futures

18.12 Trading orders & market timings

18.13 First trade basics

18.14 Commodity options market