Stock Market and Economy · Beginner
IPOs: how they work and how to judge them
What happens when a company lists, how to apply, how allotment works and what to check before you invest.
What is inside
5 short lessons. Each ends with a quiz, so you know what you have learnt.
The essentials
- IPO basics
- Price and application
- Allotment and listing
- Judging an IPO
- Risks and cautions
Key ideas you will take away
- IPO is the first public sale.
- Read the offer document.
- Bids are within the band.
- Cut-off accepts the final price.
- High demand means lottery.
- Listing can be a gain or a loss.
Try a question
Q1. Which statement best describes “IPO”?
- This is the prospectus that describes the company, its business, risks and use of funds.
- This is where new shares are issued and sold by the company, as in an IPO.
- This is when a company sells its shares to the public for the first time and gets listed on an exchange.
- This is the exchange where existing shares are bought and sold among investors after listing.
Show the answer
C. IPO: An IPO, or initial public offering, is when a company sells its shares to the public for the first time and gets listed on an exchange.
Q2. Which statement best describes “Price band”?
- This is the range in which investors can bid for shares in the IPO.
- This is an option where a retail investor agrees to buy at whatever final price is set within the band.
- This is a way to apply where the amount is blocked in your bank account and debited only if shares are allotted.
- This is the process of collecting bids within the price band to discover the final issue price.
Show the answer
A. Price band: A price band is the range in which investors can bid for shares in the IPO.
Frequently asked questions
Is the IPOs: how they work and how to judge them course free?
Yes. Lessons, quizzes and practice are free. Sign in once with your mobile number or Google to start.
Who is the IPOs: how they work and how to judge them course for?
It is a beginner-level course with 5 short lessons, written in plain language for beginners and for people who advise others on money.
Can I learn this in Hindi or Gujarati?
The app screens switch between English, Hindi and Gujarati at any time, and many quiz questions have translations. Lesson text is in English for now.
Do I get a certificate?
Yes. Pass the course exams to earn a certificate that anyone can verify online.
Is this investment advice?
No. It is education only. Speak to a qualified adviser before you act on your own money.
Related courses
UpperCrust Academy is independent study material from UpperCrust Wealth. It is not affiliated with NISM, SEBI or AMFI. For education only. Not investment advice. Always confirm the latest syllabus and rules on the official NISM website.