Doubt regarding IPO Listing Gains

122°
Post Emperor
sushrutji29544
Hi dimers,
  It may be a silly question, but suppose a person named 'A' applied in an IPO at 100 Rs cutoff price, then after 3 days company gets listed at 100% premium means current market price is 200 Rs. A got 100% returns and he sold all the shares.
Now my doubt is within 3 days, where did this 100 rs difference come from ? "Who paid for the profit that A got"?
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Benevolent Benevolent
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The buyer who purchased your share..

Benevolent Benevolent
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A's Share
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Deal Captain Deal Captain
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Ans : B

Generous Generous
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Seems interesting 🤠🤠

Following 🙂🙂

Critic Critic
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It came from the people who think A s price (valuation) is more than what you or the IPO setters thought. Stock market works on perception, not on actual value.

Deal Subedar Deal Subedar
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it came from the person who paid 200rs man, profit only comes when there is a transaction 

Benevolent Benevolent
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This is the right answer. The ₹100 extra came from the person who bought at ₹200 a share. 

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Benevolent Benevolent
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The buyer who purchased your share..

Benevolent Benevolent
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A's Share
Super Stud Super Stud
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Aap jeete h 

replyuser
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