Nifty 50
Sensex
US Tech 100
Dow Jones
FTSE
Dax
CAC
Nikkei 225
Hang Seng
SSE Composite
TAIEX
KOSPI
Gift Nifty
Strategy Indices
Broad Market Indices
Sectoral Indices
Thematic Indices
Home
Finance GlossaryPre-IPO
Pre-IPO
Definition of Pre-IPO
Pre-IPO (or Pre-Initial Public Offering) refers to the phase of a company where it raises capital by selling its shares to private investors (such as venture capitalists, private equity firms, or institutional investors) before officially going public with an IPO. These shares are bought at a discount to the expected IPO price. Investing in pre-IPO shares is for experienced investors because the shares are illiquid and have a high risk, but have the potential for high returns if the company performs well after listing.
Related Terms
Income Stocks
Income stocks are shares of companies that help you earn a steady income, typically in the form of dividend payouts. At the same time, income stocks are known to have lower risk compared to others and thus, relatively decent returns over a period of time. But the consistently growing dividend yield makes up for the perceived lack of returns.
Bombay Stock Exchange
Established in 1875, Bombay Stock Exchange or simply BSE is a place where stockbrokers and traders can buy and sell securities like stocks, bonds, ETFs, and more. 5000+ securities are listed on BSE, which is the oldest stock exchange in India and Asia.
Quarterly Results
Quarterly Results refer to the financial statements released by publicly listed companies every three months, covering a specific quarter of the fiscal year. These reports include income statements, balance sheets, cash flow statements, and key metrics like revenue, net profit, earnings per share (EPS), expenses, etc. They offer investors and analysts a snapshot of operational performance, growth trends, and future guidance, enabling better assessment of the company’s financial health and strategic direction compared to annual reports.
IPO
An IPO or Initial Public Offering is the method in which a privately held company becomes a publicly listed company. Existing shareholders must approve the IPO plan before the company can go public. Once shareholders approve, the company will either hire an intermediary or go for a Direct Public Offering, the result of which will be the determination of a price for the new equity shares that will be listed in the primary market.
Defensive Stock
A defensive stock refers to the shares of iconic companies that generate stable and consistent returns and dividends, regardless of the market conditions.
Defensive stocks are rare because companies that have defense against every market condition are rare.
While defensive stocks may not generate high returns, they are known to add stability and defense against declining economic conditions. In India, stock of ITC Limited is an example of a defensive stock.
Defensive stocks are rare because companies that have defense against every market condition are rare.
While defensive stocks may not generate high returns, they are known to add stability and defense against declining economic conditions. In India, stock of ITC Limited is an example of a defensive stock.
S&P 500
The S&P 500 is a stock market index in the US and tracks 500 of the largest publicly listed companies in the country. The S&P 500 represents a wide range of industries. Often, it is used as a benchmark for the performance of the global equity market. Many investors consider the index as a picture of how the overall US economy is performing. It also reflects the overall market sentiment.
Invest & Trade with a Trading
Platform That's #MadeForTrade
Open your Dhan Account in minutes!
