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Stock Market Basics Chapter 3. IPOs

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  So after a six months of long break, I am back! I have talked about the reason behind my absence in another blog, which you can read  here . But now let's talk about where we left the series, The IPOs. So, as I said in the previous chapter, the IPO is short for Initial Public Offering. It is when a company decides to go public for the first time. Today we'll see the reasons companies go public and the advantages of going public and how it's done. Reasons Companies go Public. Now there are three main reasons why companies decide to go public: To raise funds to meet CAPEX. As we know, CAPEX stands for Capital Expenditure. It is the expense evaluated by the company for long term planning. Many companies go public so they could get the funding for these expenditures.  To avoid debt. To meet this CAPEX, many companies take a loan from banks. But a loan means you have to return the money. And if an entrepreneur is already in debt, they try to see other ways to raise funding for

Stock Market Basics Chapter 2. How does the Business work? And where does the funding come from?

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  Hi everyone,  Today we'll learn how businesses work, and how to set up a business, and how to get fundings for a project. In the previous  chapter , we talked about what is the stock market is and who should invest in it. Today we'll talk about the origin of a business, and how to build it. We'll talk about Angel Investors, Venture capitalists, what they do, who are they? and other stuff. I'll be using a small anthology to make the explanation a lot easier. So here we go. So to understand the funding aspect of a business, you need to break it into multiple levels, there are many ways a business can get funding and we'll go into that. Angel Investors. Now imagine this, there's a guy named, Thomas, who has an idea to build great AI learning programs for Dyslexic kids and believes he can take it to the world and change the world, but he needs money to work on that. So he tries to convince his two friends, Michael and Rohit to invest in his business in return for

Stock Market Basics Chapter 1. Introduction to Stock Market

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  Stock Market Basics. Chapter 1. Introduction To Stock Market. Hello Everyone, Today I'll be starting my new series "Stock Market Basics." In this, we'll explore the stock market and learn a bunch of stuff as I promised in my previous  article . I'll be uploading one chapter every week, so stay tuned. Before we learn the inner workings of the Stock Market, we need to understand the stock market, which is what this chapter is about. Now before we begin, this series will be on the Indian Stock Market. So let's begin, You might have heard from many people that Stock Market is a scam, or that the stock market is gambling. But is it true? Well, no it's not. But why do people believe so, to understand we need to understand the stock market itself. What is the Stock Market? Stock Market is a marketplace, where people buy and sell shares of companies and businesses. Now it doesn't have a physical location, but the transactions take place digitally. Now, what