This video give you better understanding of how Investment bank works. They have full control on deployment and setting of stock prices of IPO (Initial Public Offering).

Funny Video about Issuance of Stock.

In first step of Stock Issuance, Investors contact to Investment bank. When Investment bank feels that there is charm in issuance of stock of that company,then they contact to Securities and Exchange Commission. SEC review there application and if they think that it’s lucrative for investors they allow to Investment bank to issue stocks into the market. First time, when stock issue, it’s called Primary Market.

Investment Bank charge some percentage against selling of stocks. Enjoy the Funny Video of IPO

Post by OLY.