Share Market and IPO Investing Basics
A plain-language introduction to shares, IPOs, risk and the questions to research before making an investment decision.
What is a share?
A share represents ownership in a company. Its market price can rise or fall, and returns are not guaranteed. Investors may lose some or all of the money they invest.
What is an IPO?
An initial public offering is when a company offers shares to public investors under an offer document. Before applying, read the company’s prospectus, understand how the proceeds will be used, review risks and financial statements, and confirm the issue dates and price band from official sources.
How IPO application payments work
In ASBA, application funds are blocked in the applicant’s bank account while the issue is processed; the amount is debited if shares are allotted. SEBI and the exchanges publish current instructions for ASBA and UPI applications. Follow the instructions shown by your bank or registered intermediary for each issue.
SEBI Investor: apply in an IPO through ASBA · NSE: ASBA procedure
Research and risk
Consider your goals, time horizon and ability to tolerate losses. Review the issuer’s risks and official filings; do not rely on grey market premium, social posts or listing-day predictions as a substitute for research. A higher quoted GMP does not mean an IPO is suitable for you.
SEBI Investor: securities-market risks · SEBI Investor: due diligence
Use IPOAlpha as a reference
IPOAlpha provides IPO status, dates, subscription and unofficial GMP references for research. Figures can be delayed or change. Confirm important information through the issuer, registrar, SEBI and the exchanges.