Difference between Private Placement and Preferential Allotment

difference between private placement and preferential allotment

The unlisted companies first time raise share capital by issuing IPO to the general public/ investors, however, issuing an IPO involves various strict rules and regulations and being, complicated procedures the mediocre or newly establish enterprises sometimes unable to raise funds through an initial public offering.

Therefore, such companies which don’t want to go into public or unable to fulfil the guidelines of SEBI (Securities and Exchange Board of India) can also raise funds through private placements or preferential allotment.

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Difference between Bonus Shares and Right Shares

Difference between Bonus Shares and Right Shares

Share capital is the most popular and convenient source of long term finance for companies. The organisations utilise multiple types of issues to raise public funds from the capital market. The IPOs and FPOs are one of those issues through which a company issue (sell-off) financial securities like equity shares for the investors to subscribe.

The right issue and bonus issue are other types of issues which the companies utilise to raise capital and as cash alternatives in different circumstances. 

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Difference between IPO and FPO | 7 Key Differences

Difference between IPO and FPO

The IPOs and FPOs are utilised to arrange funds from the general public and there is a misconception that IPO and FPO are similar but there is some difference between IPO and FPO.

The companies raise long term funds from the capital market for their day to day operations, new project finance and expansion purpose. In order to raise public funds, the companies or government issue the securities like bonds, debentures or shares in the primary market.

There are multiple types of issues through which the organisations float stocks/ shares in the capital market, IPO and FPO are some of those mechanisms of issuing stocks in the capital market.

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Capital Market | Capital Market Instruments and Functions

capital market

The corporations, government entities or other financial institutions raise funds to fulfil their requirements of money through issuing/ selling securities to the general public. These securities can be equity or debt securities which the general investors buy for the sake of returns on their investments.

One link is missing in the whole process that is a ‘marketplace’ where these securities are traded (brought or sold) between issuer and buyers.

Hence in this article, we will learn about the capital market, capital market instruments, functions of the capital market and much more.

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Money Market and Capital Market | All You Should Know

money market and capital market

The financial systems of a country comprised of four different types of financial markets viz Money Market, Capital Market, Commodity Market and Forex Market. Each market deals with separate financial instruments and fulfil different types of credit requirements of businesses.

The corporates or government meet their short term or long term needs of funds by raising funds from the general public through these financial markets. 

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