What is book building what is the difference between book building and fixed price system?

The main difference between the book building method and the fixed price method is that in the former, the issue price to not decided initially. The investors have to bid for the shares within the price range given. The issue price is fixed on the basis of demand and supply of the shares.

What is book building offer?

Book Building is basically a process used in Initial Public Offer (IPO) for efficient price discovery. It is a mechanism where, during the period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price.

What is book building method of issue of shares?

Book building is the process by which an underwriter attempts to determine the price at which an initial public offering (IPO) will be offered. The process of price discovery involves generating and recording investor demand for shares before arriving at an issue price.

What is the difference between right share and bonus share?

The difference between Right Shares and Bonus Shares is that the right shares are issued to the shareholders at a discounted rate. Bonus shares are issued to the shareholders for free of cost. Right shares are always paid fully or partly, whereas bonus shares are always paid fully.

What is the difference between book building and single bid?

The main difference between the book building method and the fixed price method is that in the former, the issue price is not decided initially. The investors have to bid for the shares within the price range given and based on the demand and supply of the shares, the issue price is fixed.

What is fixed price offer?

A fixed price offer is one where the offer price will not change. All applications and allocations will be at this price.

What is offer for sale in stock market?

Offer for Sale (OFS) is when the promoters i.e. owners of a listed company sell their shares to the general public. It is a transparent process which takes place on the stock exchange.