FPO FOR STOCK MARKET?

FPO abbreviated as Follow-on Public Offer is a process in which an existing company listed on the stock exchange issue new shares to the existing shareholders or to the new investors. It is different from an IPO where the company issue its shares to its public for the first time to collect funds in order to grow their business. The reason behind the company performing an FPO is to expand its equity base. The company uses FPO only after the company has started the process of an IPO to make their shares available to the public and to raise capital for their business. The FPO is raise basically for two major purposes: 1) :- After a long period of rise in the market, KIO company brings FPP in the market It is big FPO on the market,,,@ Types of FPO ? :- There are two different types which a company can conduct Follow on Public Offer (FPO): 1) Dilutive FPO 2) Non-Dilutive FPO Dilutive FPO In dilutive FPO, the company issue additional number of shares but the price value of the company’s share does not changes and remains the same. This overall decreases reduction in earnings per share as well as the share price. Here, the company’s board releases new share offerings to the public. However, an FPO is used by a company only to reduce the debt or to raise additional capital of the company. IT'S the best possible the gain of market 💹 3:- SHOULD YES SUSCRIBE FOR AN FPO ? :- FPO is generally considered an advantage compared to IPOS because investors get an idea about the company's management, business practices, and potential growth. The company listed on the stock exchange is not new, and investors will get the historical reference for its earnings report, the performance of the stock market, and much data to bank on. FPO tend to have less risk than IPO because the price fixed for an IPO is lower than the market price to attract shareholders to invest more in FPO. Several shareholders engage in the FPO to buy shares at a discounted market price and sell them in the market to gain a premium on their transaction. A lot of research is required in FPO to know about the company and its past performance, but the degree of homework in FPO is a lot easier. Hence it goes well for risky investors and gives them an opportunity to access shares of a company at a discounted price. HAPPY TRADING FOR THE STOCK MARKET IT'S SI GROWTH OF POWER MONEY COMPUDING