GREAT START

WELL TODAY WE BEGIN TO ACTUALLY WATCH THE MARKET AND WHAT A COINCIDENCE ,DLF'S IPO(INITIAL PUBLIC OFFER) TOO HAS OPENED RIGHT TODAY.
IPO PRESENTS US THE BEST OPPORTUNITY TO BUY SHARES OF A PARTICULAR COMPANY.IF YOU READ DLF'F ADVERTISEMENT IN THE NEWSPAPER TODAY THEN YOU GET A FAIR IDEA OF THE IPO.

LET ME SUMMARISE THE IPO FOR YOU(IT WOULD BE OF GREAT HELP IF YOU KEEP THE ADVERTISEMENT ASIDE YOU JUST NOW).SOME IMPORTANT POINTS ARE JOTTED BELOW
1.DLF LIMITED:
THE IPO HAS BEEN BROUGHT OUT BY A COMPANY NAMED DLF LIMITED.IT IS INVOLVED IN LARGE INFRASTRUCTURAL PROJECTS.
REMEMBER SHAHRUKH KHAN'S AD OR EVEN BETTER THE DLF CUP HELD BETWEEN INDIA,AUSTRALIA AND WEST INDIES RECENTLY.

2.PRICE BAND Rs 500 /-TO Rs 550/- PER SHARE OF FACE VALUE Rs2/-:
THIS MEANS THAT THE SHARE CAN BE BOUGHT AT THE LOWEST OF Rs 500/- AND NOT BEYOND Rs 550/-.THE FACE VALUE SIGNIFIES THE VALUE ON WHICH DIVIDEND WILL BE DECLARED.

3.BIDS CAN BE MADE FOR A MINIMUM OF 10 SHARES AND IN MULTIPLES OF 10 SHARES THEREAFTER:
THIS MEANS YOU CAN BUY 10,20,30,... SHARES AT A TIME.ODD NUMBERS LIKE 5,15,25 ETC AREN'T PERMITTED.

4.BID/ISSUE OPENS TODAY CLOSES ON JUNE 14,2007:
PRETTY STRAIGHT FORWARD,THIS MEANS THAT YOU CAN SUBMIT YOUR APPLICATION FROM TODAY UP TO 14TH OF JUNE (i:e WITHIN THESE FOUR DAYS).

5.HOW TO APPLY?
ITS EASY,GO TO ANY NEAREST SHARE BROKER AND PICK-UP THE FORM(ABSOLUTELY FREE).FILL THE FORM CONSULTING YOUR BROKER AND ATTACH WITH IT A CHEQUE FROM YOUR SAVINGS ACCOUNT AND YOUR PAN CARD'S XEROX COPY.

6.DOES EVERY ONE GETS THE SHARES?
NO,NOT EVERY WHO APPLIES GETS THE SHARES.IT DEPENDS UPON WHAT VALUE YOU APPLY FOR ,HOW MUCH QUANTITY YOU APPLY FOR AND HOW CORRECTLY YOU FILL THE FORM.
FOR INSTANCE HERE THE PRICE BAND IS Rs 500 TO Rs 550/-.THE SHARES WILL BE ULTIMATELY SOLD FOR SOME VALUE IN BETWEEN THE ABOVE TWO VALUES.

SO HOW ARE YOU SUPPOSED TO GUESS THE RIGHT VALUE?
THE EASIEST WAY IS TO LEAVE THE GUESSING TO THE COMPANY,BY SELECTING THE CUT-OFF OPTION.CUT-OFF MEANS THAT YOU ARE READY TO BUY THE SHARES AT WHATEVER VALUE THEY ARE AVAILABLE.

STILL NOT GETTING IT?
YOU CERTAINLY ARE BOUND TO GET CONFUSED BECAUSE OF THE HEAVY INFLUX OF INFORMATION,SO AS USUAL I WILL EXPLAIN WITH A EXAMPLE.

1.SAY I HAVE DECIDED TO APPLY FOR DLF'S IPO.
2.I WILL GO TO ANY NEAREST BROKER AND GET A APPLICATION FORM.
3.I WILL FILL THE FORM PROVIDING ALL NECESSARY DETAILS.
4.NOW I WANT TO BUY 20 SHARES,AT WHAT PRICE SHOULD I BID?
I WILL SELECT THE CUT-OFF OPTION,THAT MEANS I AM READY TO PAY WHATEVER THE FINAL VALUE IS.
5.WHEN I SELECT CUT-OFF OPTION I WILL HAVE TO PROVIDE THE FUND FOR THE SAME.
HERE THE MAXIMUM VALUE IS Rs 550/- AND I HAVE TO BUY 20 SHARES SO I WILL GIVE MY BROKER A CHEQUE OF Rs 11,000/-(550 * 20 = 11,000).
IF THE SHARES ARE FINALLY SOLD AT Rs 530/- ONLY , THEN I WILL GET A REFUND OF Rs 20/- FOR EACH SHARE i:e 20*20 = Rs 400/-.
THIS IS QUITE A SAFE OPTION AND I CAN ASSURE YOU THAT YOU DO GET YOUR MONEY BACK.
6.JUST IN CASE YOU DON'T GET ANY SHARES AT ALL ,THEN YOUR COMPLETE AMOUNT IS REFUNDED TO YOU (MOSTLY WITHIN A FORTNIGHT,BUT DEPENDS UPON WHERE YOU RESIDE).

BETTER ASK THE FOLLOWING QUESTION TO YOUR SELF?
a.DO I REALLY KNOW THE COMPANY (DLF IN THIS CASE) OR I AM JUST TRUSTING TITS AND BITS INFORMATION?
b.DO I HAVE THE LIQUIDITY OF FUNDS?
C.AM I CONFIDENT ENOUGH TO COMPLETE THE TRANSACTION ON MY OWN?
DO NOT BE ASHAMED OF ASKING YOUR BROKER THE SIMPLEST OF THE THINGS,HE IS THERE ONLY TO HELP YOU(RATHER YOU PAY HIM TO DO SO)

WELL YOU CAN CERTAINLY GIVE THIS IPO A TRY,BUT AS I SAID PREVIOUSLY DO NOT LISTEN TO ANY TIPS,DO THE RESEARCH ON YOUR OWN AND THEN DECIDE TO INVEST,BECAUSE THE MONEY INVOLVED IS ALL YOURS.