IPO is a common abbreviation in the business world. But, many of you may be unfamiliar with it. In this post from HitBangla.com, you will know about the meaning of IPO and how to apply for IPO.
WHAT IS IPO:
IPO means Initial Public Offering. It is also called Primary Market. It is the process of collecting money from general people of the country who are interested to invest in a business company.
In our country, IPO is thought to be a risk-free investment. Generally, when someone starts a business, they start it with their own money or a bank loan. When they need to increase the business, then they sell some share of their business to the general people of the country instead of borrowing more money from the banks. The process of selling this share is called IPO. This is one of the most interesting investments in Bangladesh.
HOW TO APPLY FOR IPO:
You need a Beneficiary Owners (BO) account. All of us are familiar with a bank account. A bank account is used to store and exchange money. Similarly, BO account is needed to exchange share. Central Depository Bangladesh Limited (CDBL) provides the BO account number in Bangladesh. You need a Brokerage House where you can open a BO Account. Almost 200 Brokerage Houses are available in Bangladesh. There are 16 digits in a BO account. The first 6 are Depository Participants (DP) numbers and the last 10 are Beneficiary Owners (BO) numbers.
The difference between a Bank Account and a BO Account is: A Bank Account can be made in any bank, but a BO Account can be made only by the CDBL licensed companies.
One person can get only 2 BO accounts. One is Self and the other is Joint.
You can apply only one time from your BO account for a particular IPO. A lottery is applied among those who want to invest in the company as there are more applicants for IPO than the share numbers provided by the company. The applicants have to deposit money to the Broker House within the selected date and time.
The lottery draw takes place within 3 weeks of that last date. The result is published online within 2-3 hours of the draw. If you win the lottery, then your money will be taken by the company as an investment and if you lose, your money will be returned to you within 2-3 days. Then you can apply for another IPO with that money.
Earlier, those who got share through IPO, have made a huge amount of interest from it.
WHAT IS NEEDED FOR A BO ACCOUNT:
- Firstly, you need a bank account. If you already have one, you can use it also.
- 2 copies of passport sized colored photographs of the applicant (with name and signature at the back of each photograph) and 2 copies of passport sized colored photographs of the nominee (with name and signature at the back of each photograph and attested by the applicant).
- An application on the CDBL BO Account form with your correct phone number, house address, occupation etc.
- NID Card photocopy or Driving License photocopy or Passport photocopy.
- Bank certificate or Bank passbook copy or check copy.
- Every photocopy should contain the applicants signature on it.
Thanks for reading this post.
Incoming search terms:
fifa purno meaning