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Johnson, ministers, and executives from the London Stock Exchange have been involved in an 11th-hour bid to persuade SoftBank to consider at least a partial listing of Arm in the country. However, higher valuations have recently made New York a more attractive choice for most of the world’s largest tech flotations. 

“We want to make the UK the most attractive place for innovative businesses to grow and raise capital,” a government spokesperson commented in May.

Back in February, SoftBank CEO Masayoshi Son disregarded the UK when outlining backup plans for the flotation of Arm following the collapse of a $40 billion takeover deal by its California-based rival Nvidia.

“We think that the Nasdaq stock exchange in the US, which is at the centre of global hi-tech, would be most suitable,” Son commented at the time.

However, more recently, Son said London was still an option for the company’s upcoming stock market listing, though added that his top preference was the US’s tech-focused Nasdaq stock exchange.

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A funding round is a window of opportunity for external investors to provide cash upfront to a business in exchange for shared ownership or equity in a said company. You may have seen all kinds of funding rounds mentioned about high-growth companies within your industry, but what does each type of funding round mean?

Below, we explore the most common types of funding rounds and the importance of each funding session to businesses throughout their respective growth journeys.

1. Pre-seed round

The pre-seed funding round is the earliest stage a company can seek external finance. Pre-seed funding is not typically considered an official round of funding, but rather a push to get sufficient funds to get a start-up off the ground. Pre-seed funding could revolve around borrowing funds from family or friends in the first instance. During the developmental stages of a business, it’s highly unlikely to obtain outside investment in exchange for equity in the company.

2. Seed round

The seed round is typically the first formal funding round for a company. It’s often launched at the proof-of-concept stage when a start-up has the basis of a prototype or a minimum viable product to demonstrate the commercial opportunities to prospective investors.

It can be scary when a fledgling company has to launch an investor funding round for the first time. There are so many legal and bureaucratic processes to consider. Luckily, it’s no longer essential to spend vast sums of money on lawyers to go about getting everything ready for your first funding rounds. There are powerful online tools that enable entrepreneurs to handle fundraising and all the subsequent legal matters surrounding it.

3. Series A round

Series A funding is usually reserved for businesses that are considered ‘established’ in their field. They can back that up with evidence of year-on-year revenue and potentially year-on-year revenue growth, as well as other key performance indicators that suggest the business is starting to thrive.

Series A funding rounds are designed to give established businesses the additional wherewithal to enhance their product or service offerings and broaden their client base. On average, Series A funding rounds will weigh in between anything from £1.5 million to £11.5 million.

4. Series B round

Series B funding rounds are, unsurprisingly, the second formal opportunity for venture capitalists and private equity investors to offer funds to growing businesses. Series B rounds are typically viewed as a lower-risk investment opportunity. That’s because companies in need of Series B funding are usually flourishing and valued significantly higher than they were during their Series A funding round.

It’s not uncommon for companies to be valued at more than £30 million prior to Series B funding. Series B rounds are often used to strengthen a range of company departments, from marketing and advertising to customer support and sales.

5. Series C round

A round of Series C funding is when things start to get really serious. These rounds are mostly reserved for businesses readying themselves for rapid growth. They will have already proven themselves to be a success in their respective markets and may even be ready to merge and acquire rival businesses to increase their market share or scale up their capabilities.

After the third round of serious funding, most companies are either ready to push for an IPO or forge ahead organically. However, it’s not uncommon for Series D and even Series E rounds to take place for companies looking to expand on a global scale.

Preparations for the IPO follow on from the collapse of Nvidia Corp’s deal to buy Arm from SoftBank for $40 billion after widespread objections from US and European antitrust regulators. SoftBank has announced it will likely list Arm on Nasdaq by March of next year. 

Over the past few weeks, SoftBank has interviewed investment banks for Arm’s IPO, asking them to commit to providing a credit line as part of their commitments to the deal.  

Last month, SoftBank founder Masayoshi Son promised investors that the company “will aim for the biggest IPO ever in semiconductor history,” when discussing Arm’s listing. 

While it is likely that SoftBank will list Arm in the United States, the venue of the flotation is reportedly yet to be finalised.

As mutual funds have grown in popularity in India, so has the number of fund houses or AMCs (Asset Management Companies). When you visit the websites of prominent AMCs, you will notice that they provide several sorts of mutual fund programmes to investors.

But have you ever thought about how these strategies came to be? Using NFOs. Investing in a mutual fund scheme during the NFO period could be quite profitable. Consider what NFOs are, how they work, and the benefits they provide.

What Is An NFO?

When a fund house creates a new mutual fund plan, it is referred to as an NFO. Similar to stock market IPOs (Initial Public Offerings), fund houses employ NFOs to obtain initial money for the purchase of securities that are in line with the fund's aim.

The NFO is open for a set length of time, during which investors can participate in the programme at the offer price. The NFO pricing in mutual funds in India is normally fixed at Rs. 10 per unit of the mutual fund scheme. When the NFO period finishes, current or new investors can only purchase units of the plan at a predetermined price, which is usually higher than the NFO price.

Is This A Good Opportunity For You?

The fund house uses an NFO to generate funds from the public to purchase market instruments such as equity shares, bonds, and so on. They are similar to IPOs, in which the general public can purchase shares before they are listed on a stock exchange. Furthermore, the extensive marketing efforts that go into its promotion make it a too-good-to-pass-up chance. However, before selecting one, you should use your discretion and wisdom. Just look at our market for a better view and understand the upcoming NFO of the market.

Types Of New Fund Offers

They are mostly of two types, and they are:

Open-Ended - An open-end fund will announce fresh shares for purchase on a specific launch day in a new fund offer. The number of shares available in open-end funds is unlimited. On their initial launch date and subsequently, these funds can be purchased and sold through a brokerage firm. The shares are not traded on a stock exchange and are managed by the fund business and/or its affiliates. Net asset values for open-end mutual funds are reported days after the market closes.

Close Ended - Because closed-end funds only issue a limited number of shares during their new fund offer, they are frequently among the most heavily marketed new fund issuances. Closed-end funds are traded on an exchange and receive daily price quotes throughout the day. Closed-end funds can be purchased through a brokerage firm on the day they are launched.

Benefits Of Investing In NFOs

1. Disciplined Investing Lock-in Period

Many people invest in mutual funds only to redeem them after a few months. This has a detrimental influence on the investment objectives. However, with NFOs, such as closed-ended NFOs, there is a lock-in term during which you must remain invested. This systematic approach to investing boosts the possibility for profits. Here is the list of a few upcoming NFOs.

2. Produce Profits

As previously stated, there might be a large disparity between the NFO and NAV prices. This distinction can be extremely lucrative at times.

3. Invest In Emerging Funds

Many AMCs are currently introducing novel mutual fund plans. Some schemes, for example, invest solely in newly listed stocks and IPOs. In addition, some schemes include hedging tactics to provide higher returns for investors. You can invest in such funds through NFO before they are open to all investors.

This is just the tip of the iceberg, and you can find more that match your financial needs and are good performers.

Should You Be Investing In NFOs?

While NFOs can be quite rewarding, it is incorrect to believe that every NFO would produce large returns. Before investing in NFO, you need to think about a few things. They are as follows:

Unlike traditional mutual fund schemes, where you can simply review prior performance before making an investment decision, NFOs do not provide any past performance statistics. As a result, they are risky and are not suitable for risk-averse investors.

Investors That Look To Invest In NFOs

When the markets are at their highest, most investors look for mutual fund investment opportunities. They want to get into the market, whether it's gold or real estate because they believe it will increase further. However, they also favour profitable investments that are offered at a lower cost. Asset management businesses (AMCs) attempt to capitalise on this investor mindset. 

This is why many gravitate toward the ostensibly less expensive NFOs. Investors consider NFOs to be a good value for money and subscribe to them. As a result, the fund houses will be able to meet their goal of boosting their Asset Under Management (AUM).

Conclusion

This can be an opportunity for you to diversify your portfolio, especially given the paperless and instantaneous investment processes. Giving you a heads up - just read the print of the NFO thoroughly and find out if it matches your objective and goal.

Robinhood reported a net loss of $423 million, or $0.49 per share, in the three months ending in December 2021. A year earlier, before its IPO, the company had posted a net income of $7 million or $0.01 per share.

Following the news of the results, shares of Robinhood dropped by as much as 15% to $9.98 in extended trading. 

Robinhood, in its third set of results as a public company, posted total revenue of $363 million for the fourth quarter of 2021, compared to $318 a year earlier. According to IBES data from Refinitiv, analysts had been expecting revenue of $362.14 million. 

During the fourth quarter of 2021, Robinhood’s costs rose 163% from the previous year, contributing to its $423 million net loss.

Robinhood, like many other tech start-ups, is yet to turn a profit following its IPO in July 2021. While its revenue was a positive sign, the company saw its monthly active users drop by 8% from the previous quarter to 17.3 million.

Back in September, Reuters reported that Reddit, which was founded in 2005 by Steve Huffman and Alexis Ohanian, was hoping to reach a valuation exceeding $15 billion by the time it planned to list its shares. 

The San Francisco-based company’s message boards have been at the heart of a pitched battle between small-time traders and large Wall Street firms that carried forward big gains in highly-shorted shares of companies such as GameStop and helped to grow the popularity of the term “meme stocks”. 

At the peak of the craze in February, Reddit’s value doubled to $6 billion from the previous year and, in August, was valued at $10 billion in a private fundraising round. 

In October 2020, Reddit had approximately 52 million daily active users and over 100,000 communities. In the second quarter of this year, the company reported $100 million in advertising revenue, almost a threefold jump from the same period in 2020.

Rather than risk becoming confused, it is worth considering each of these terms one at a time. As a new trader, it pays to look into industry advice such as a professional Trade Nation Broker Review, and to arm yourself with all the terminology you can. Let’s break down some of the most common terms you will come across when reading up on trading:

Day Trading

This one should be nice and simple — it refers to trading during the day! However, what you may not know is that it also refers to completing transactions on the same day too. This is often a lucrative way of making money on your portfolio.

Initial Public Offering (IPO)

When a brand or business sets up an IPO, this means that they ‘go public’ with shares in their company. This is when everyday traders are able to buy small portions of these companies that they may be able to sell on at a profit. For the company, it is a quick and easy way to raise funds for ongoing development.

Averaging Down

When the average price of a stock goes down, some investors and traders may choose to buy it up. This is largely in the belief that the stock price will spike again in the future. It’s banking on the reputation of the stock reversing. Averaging down means you take advantage of a dip.

Leverage

Leverage can be complex, but many traders and investors swear by it. Leverage allows you to actively borrow from a broker. It’s much like borrowing and then paying back the loan when you make a profit. However, the risk is that there is never any guarantee of success.

Rally

Rallies, on the other hand, are generally always good to see. A rally is a spike or a sudden upturn in the value of a stock. For example, any rapid uptick of 15% could be considered a type of rally. Many traders ride these rallies for as long as they can.

Spread

Spreads can also be complex. The spread is, by and large, the difference between the sale price and the bid price for a specific stock. For example, if you put stock up for sale at £40, and your buyer offers £37, that’s a £3 spread.

Trading is fast becoming a common source of passive income for everyday people. You no longer have to be an FTSE guru to take full advantage. However, when the complexities of cryptocurrency trading loom into view, it can be easy to start feeling overwhelmed. Take your time and be sure to do your homework — trading success is certainly a marathon, not a sprint.

According to EY, UK stock market listings in the first three quarters are the highest they’ve been in 20 years, with 14 IPOs raising £2.9bn on the main market and 19 IPOs raising £1.1bn on Alternative Investment Market (AIM). While an IPO is a notable objective for businesses, with a lot of potential benefits, some risks and considerations come with going public. 

Risks Of Going Public 

Not articulating your Equity Story Properly

An equity story is the cornerstone of a successful IPO, so it’s crucial that it’s articulated well. Equity stories help share a business’ vision while offering compelling reasons why investors should buy stocks. Companies only get one chance to tell their story, and if they get this wrong, they risk being incorrectly valued and investors not understanding the business. 

So what elements must be included to construct a powerful equity story? While there is no one-size-fits-all approach, and every business has its own authentic message, a number of components make up a compelling equity story. Firstly, investors should be able to see profit, growth and return clearly. It’s crucial that they understand the business, its purpose, its key drivers, and its plans to capitalise on future opportunities. When drafting an equity story, consider the three Cs. Is it Clear? Is it Concise?, and is it Compelling? Finally, it’s important not to overpromise. Post-IPO, investors will hold businesses accountable for delivering against those future opportunities in full, and even beyond in some cases.

Costs

Companies must have good visibility of costs before going public. An IPO process isn’t cheap. While the cost of going public varies depending on company size, offering proceeds and company readiness, businesses will likely still have to fork out millions across underwriting fees, legal fees, auditor fees and other transaction costs. 

As well as the costs of going public, Board members must consider the additional costs usually incurred once they are a public company. A survey of CFOs, carried out by PWC found that the incremental costs of being public are broadly split across five areas: incremental audit, public/investor relations, financial reporting, legal and regulatory compliance.

Timing & Resources 

CFOs cannot manage an IPO by themselves, so it’s important that organisations have a well-staffed finance department supporting them. An IPO puts an immense strain on finance teams, with high workloads and strict deadlines accompanying it. If they’re not prepared for this, they run the risk of juggling too many tasks and making mistakes. These errors could seriously impact the company’s valuation or disrupt the ‘business as usual’ activity.

As explained in Protiviti’s Guide to Public Company Transformation, “The failure to fully develop sound business processes, controls and infrastructure, particularly those that support financial reporting processes, is one of the most common mistakes companies make in their public company readiness effort.”

Benefits Of Going Public 

Access to Capital 

One of the most appealing reasons for going public is the substantial amounts of capital that can be raised. Many businesses find it expensive and dilutive to raise equity from venture capitalists and other big investors. However, equity investments from the public can help businesses to gain the capital it needs to deliver their vision. This capital can then be invested back into the company, allowing it to grow and innovate. IPOs have helped corporations fund research, develop new products, increase marketing efforts and reduce debt. 

Publicity 

Going public also gives businesses great exposure. As soon as a company announces its IPO, it receives a lot of publicity and media coverage. This public awareness could not only result in more investors, but it could also bring in more suppliers, customers and even future leadership candidates. As Investopedia shares, “A publicly-traded company conveys a positive image (if the business goes well) and attracts high-quality personnel at all levels, including senior management.”

Validation

A listed business has effectively been sold to the general public. People are putting money behind it and believe in its potential. This validation can have a substantial effect on businesses earlier in their journey or companies going through a transformation or releasing new products.

Final Thoughts 

The decision to go public should not be rushed. While there are some exciting benefits for a growing company, the challenges and risks associated with going public could be too demanding if the timing is not considered. It is the responsibility of Board members to evaluate the company’s readiness for an effective transition. This decision should not be taken lightly. 

About the author: Imran Anwar, Chief Financial Officer at Epos Now has 15+ years of cross-industry experience in maximising sustainable company growth, raising capital, initial public offerings (IPO) and strategic business transformation.

Prior to joining Epos Now, Imran served as Deputy Group CFO at The Hut Group (THG PLC). During this time, he built out the finance, governance and risk infrastructure to drive the company through a successful IPO on the London Stock Market, the largest UK initial public offering for 3 years. 

The company has recently announced that it’s intending to hire hundreds of new staff members in a bid to undergo significant expansion into Europe alongside its IPO. “We’ve always had European origins as a firm, but they’re becoming increasingly important,” said Matt Henderson, Stripe’s business head for Europe, the Middle East and Africa. 

Stripe’s expansion into Europe has been steadily gathering momentum over the past year, the company began hiring new engineers for its London office in 2020 and expects this momentum to continue into the future as Stripe sets its sights on global growth upon going public.

As part of its IPO preparations, Stripe’s London office is set to focus largely on growing non-financial company offerings, like bank integrations such as transfers and open banking. In fact, in the coming weeks, engineers will begin testing a “pay-by-bank” integration to the payments network. 

With such activity bubbling under the surface, it’s perhaps no surprise that Stripe has reportedly entered into early discussions with investment banks about the prospect of going public in 2022. The 11-year-old payments provider is said to be considering an initial public offering, but may even opt for a direct listing - although plans were subject to change. 

Most valuable VC-backed companies in the US

Image: The Strategy Story

As 2021’s most valuable private firm in the US, weighing in at a seismic valuation of $95 billion, the prospect of a Stripe IPO would undoubtedly cause a stir to say the least. Should the favourable market conditions that we’ve become accustomed to this year continue into 2022, an initial public offering for the payment giants may return record-breaking results. But what would a Stripe IPO look like? Let’s take a look at what the future has in store for the wildly successful fintech startup.

What A Stripe IPO Could Look Like

With an estimated value of almost $100 billion, a debut would mean that Stripe overtakes fellow fintech Coinbase’s direct listing in April 2021 at a value of $86 billion. Like Coinbase, Stripe may decide to avoid launching an IPO entirely, opting for a direct listing instead. This would mean that investors will need to wait until the stock arrives on its chosen market on its first day of trading, which is likely to be the NASDAQ at the time of writing. 

The company has reportedly already begun the preparatory process of going public by hiring law firm, Cleary Gottlieb Steen & Hamilton LLP as a legal advisor on the early stages of their preparations. However, there’s still very little that we can know in terms of absolutes as to when, where and how a Stripe stock is set to arrive. 

Can Stripe’s fundamentals support a mega IPO? Well, the company raised $950 million through VC funding in 2019 and 2020 alone - with a $600 million round arriving in 2020 during the peak of the Covid-19 pandemic. The company itself experiences sizeable growth during this period due to the rise of online shopping and electronic payments. With a further $600 million raised in 2021, Stripe’s revenues had reportedly climbed to $1.6 billion in 2020, with a workforce 4,000 strong at the time. 

As for competition, Stripe has industry giants like PayPal and Square to compete with. With a market cap of $305 billion at the time of writing, PayPal is a formidable competitor for Stripe - and one that may yet stifle the fintech’s expansion efforts. But amidst a rapidly growing fintech market, there’s likely to be room for both entities to comfortably co-exist to the point where this shouldn’t hinder a prospective Stripe IPO. 

Capitalising On A Prosperous Fintech IPO Market

Funding YTD Exceeds Total Funding In 2020 By 24%

Image: Digital Insurer

The emergence of the Covid-19 pandemic had a significant impact on the fintech industry. Digital transformation brought with it a widespread trend towards more online shopping and electronic payments - which has helped to aid the sustained growth of countless emerging fintech firms. 

As the data above shows, it took just seven months in 2021 to overtake the global VC-backed deal activity for fintechs in the entirety of any of the five years prior. This illustrates the seismic growth that is sweeping through the industry. Although this indicates that growth is occurring for Stripe’s direct competitors in the industry, it also opens the door for more advanced collaborations across the fintech landscape. 

We can see evidence of emerging technologies in the field of decentralised finance and borderless payments that can collaborate with fintech institutions to deliver more advanced products. In the case of emerging companies like Connectum, we can see an example of a VC-backed platform that has the ability to deliver borderless financial services through multi-currency processing, one-click payments and 3D secure, AI-powered transactions to send money globally in a frictionless way.

Quarterly Global Fintech M&A And IPO Activity

Image: FX Street

As the table above illustrates, global fintech M&A and IPO activity are also on the rise - indicating that the industry is maturing at an unprecedented rate. With 10 and 11 IPOs arriving in Q4 of 2020 and Q1 of 2021 respectively, it’s clear that the fintech industry is booming at present. 

This shows that the prospect of a Stripe debut is likely to be a significantly popular one across the market. Should momentum continue to build from 2021 into 2022, Stripe’s debut, regardless of whether it’s an IPO or direct listing, is certain to be a key contender for the biggest of the year - and a real statement of intent for the wider world of fintech. 

SPACs flip the usual process on its head. A SPAC is formed by wealthy sponsors who come together and create a company with the purpose of listing it on a stock exchange. They then have two years to find a target company to merge with who wants to go public. People are able to invest even before a target is found, despite there being the SPAC having nothing to sell. Eventually, the SPAC and target company merge, which in effect takes the company public without needing an IPO.

The market has grown considerably in the last decade. In 2013, there were 10 SPACs with roughly $144 million in assets. When you fast forward to 2020, 200 SPACs went public and raised more than $70 billion. This is a massive increase to rival the IPO market. 

There have been several high-profile companies to go public via the SPAC route in recent years, such as Virgin Galactic, DraftKings and Nikola. These are all multi-billion dollar companies that shone the spotlight on the method. The question of SPAC vs IPO is now a real dilemma for founders. Will the boom continue into 2022?

Money looking for a company

The IPO is well-known to be a long, difficult process whereby a startup can spend months dealing with investment banks to get everything ready. It demands a lot of effort from the founders and their teams.

On the other hand, SPACs bring the money to them. As the sponsors are usually industry leaders or experienced financiers, it makes the job much easier and cheaper for the founders. These third parties have all the information and know-how to guide the startup to where it needs to be to initiate the reverse merger.

High-flying SPAC sponsors are also great members of the team for startups even once the company is public. It’s a way for a startup to add a valued and trusted advisor to their team who has a vested interest to help them succeed.

Sponsors themselves may prefer investing through SPACs because they can find out more about the future of a company before investing whereas this isn’t allowed in a traditional IPO process because of the liability risk associated. The reduced formality can be a boon for those who like to get their elbows dirty.

Another advantage for founders is that the initial volatility of a SPAC public offering is usually much lower than an IPO. We’ve seen huge surges in the stock prices of IPOs such as Bumble and Snowflake in 2020, which leaves money on the table. Traditionally, companies have put off their IPO for significant periods when the market is volatile and they wait for favourable conditions. Going through a SPACs takes out any reason to delay and means the startup can get the funds it needs in a more timely manner. If harmony with the shell company’s leadership is there, the speed of the process can be lightning fast.

The tried and tested method

There are compelling reasons for startups to stick to the IPO method though. These tend to get far more coverage in the press, and this visibility can be a major lead generation source for companies. Potential customers and retail stock investors may have only heard of them because they were in the news about their IPO. As SPACs are relatively new, they foster less of an attraction for long-time entrepreneurs who dreamed of an old-school public offering.

There’s the potential for long-term gain, too, with an IPO for investors and this is reduced with a SPAC. One comprehensive study by Renaissance Capital showed that the common shares of companies that went public via a SPAC on average lost -9.6% vs the average return of an IPO, which was 47.1%. Only 31% of the SPACs in the study had positive returns. IPOs may be favoured by general investors because they are able to get in at a lower price.

The transparency aspect is another major signal for potential investors. Going public through an IPO signals the company has nothing to hide and has been investigated thoroughly by its partner institutions. This can increase trust when it comes to requesting loans. Those who invest in a SPAC before it has chosen its acquisition target are almost going in blind and are heavily dependent on the competence of the managers to make it pay off.

When market conditions are favourable, the IPO route is more favourable for investors who may turn away from SPACs to invest their money actively instead. Until a SPAC has chosen its target, investors see minimal returns at best.

The big picture

While a SPAC might be seen as a shortcut to going public, it still has to be a successful business to perform well as a growth stock. It ends up in the markets all the same, and if the fundamentals or potential isn’t there then it can collapse all the same. The method of public offering doesn’t change a huge deal in investor’s minds after the initial hype cycle.

The longer process of an IPO can actually be beneficial to a company as it ensures all the correct due diligence has been done. SPACs seem to be decreasing the time from formation to merger, which could backfire spectacularly. As a public company, the startup will need to report its data and be transparent. Rushing this through a SPAC could lead to more headaches in the future.

While the growth in the number of SPACs has increased significantly, there are growing signs the process is already less hot than it was a few months ago. There were 300 SPACs formed in Q1 2021 but less than 50 in Q2 and only 16 in July. As of yet, this slowdown isn’t spooking those in the market, but it should give those who are predicting a revolution reason to pause.

While SPACs are likely to form a larger part of the market in the long run, it’s far from certain 2022 will be the bumper year. With everything related to the pandemic hopefully settling down, the conditions for an IPO will likely be more attractive than it has been in 2020 or 2021, so we may see a slight slowdown in fact.

For companies, stocks are a great way to raise money to grow funds and capital or other products and initiatives. When you buy a stock of a company you are effectively buying a part of ownership or share in the company. It does not exactly mean you will sit next to Mark Zuckerberg in a meeting at Facebook if you buy a stock from Facebook. It means you get the right to vote in meetings when chosen to exercise it. Primarily, the reason to invest in the stock is to earn a return on the investment, and the return generally comes in two ways.

1. Price appreciation

This means when the stock goes up, you can sell it for a profit if you like.

2. Dividend

This exactly means payments made to the shareholder out of the company's revenue, and typically they are paid quarterly but just remember not all stocks pay a dividend.

All the stocks are not the same though. US stocks, for example, are so far the most diverse in the world. They come from a market of around 500 of the biggest companies in the world and not every single stock of these companies is the same. Each stock has a varied feature and different characteristics, which give the shareholders different kinds of benefits. A shareholder chooses his stock based on his capital, what kind of returns he expects, and on what tenure. So it is wise to know what kind of stocks are out in the market.

Domestic And International Stocks

You can categorise the stock based on the location. To distinguish them from each other most investors look at the location of the company and its official headquarters. It is important to understand that the stocks Geography category does not correspond to where the sales happen. For instance, a stock that you buy can have the company headquarter in the US but sell this product exclusively out of the country. You can see this in large multinational companies.

Growth And Value Stocks

A growth stock is a stock that has a high-risk level but at the same time a very attractive return. Growth stocks rise in demand among customers and the environment and are more interlinked with the long-term trend. And competition for this growth stock is highly intense in the market, and several times rivals disrupt the business. Investors who invest in growth stocks look for companies that have sales and profits rise tremendously quickly.

Value stocks, on the other hand, are a more conservative investment. They often show stocks already in the growth phase of the industry and take the leading space. There is not much room left to expand for them, and no new inventions are coming up. Yet, the risk involved in this stock is comparatively lesser than a growth stock. They are good choices for people who look for more price stability while setting some of the positives of exposure to stocks. Value investors search for companies whose shares are inexpensive. Value share is comparatively lower in price.

IPO stocks

IPO stocks are the companies that have recently gone public. They usually generate a lot of excitement among the investors who look to get to the bottom of a promising business concept. They are also highly volatile, especially when there is disagreement within the investment community about growth and profit. It remains private for a minimum of a year or as long as 2 to 4 years after it becomes public.

Dividend stocks

Dividend stocks or income stocks are the stocks that pay out forms of dividends. They are also referred to as shares of companies that are more mature businesses and have relatively few long-term opportunities for growth. An ideal conservative investor who needs to draw cash from an investment portfolio right away would be strongly choosing a dividend stock. An investor who would choose this stock would be and investors who have a low-risk tolerance or someone who is nearing their retirement phase and are looking out for a safe keeps out

Safe Stocks

These stock prices do not move fast or in a big amount. They are not affected by the overall market, and they come from Industries that do not get affected by the economic conditions. They offer paid dividends, and by that income can be set even during falling share prices during tough times. They are also known as low volatility stocks and operate in industries that are comparatively safer than the others.

Blue-chip stocks

These stocks come from the most reputed companies in the market. They come from companies that lead the industries. They do not provide a higher return but are known for their stability in the market. This feature makes them a favourite kind of stock for many investors. They have a high reputation in the market and hold a low-risk possibility. 

Penny stocks 

Penny stocks are contradictory to Blue chip stocks. They are highly inexpensive, of low quality, and come from companies whose stock prices are extremely low, typically less than a dollar per share. At the same time, they are highly dangerous in speculative Business models and prone to a scheme that can drain your entire investment. They are dangerous, but the benefit is that they are highly inexpensive, and you can easily afford them.

Conclusion

Portfolio diversification is a necessity if you want to be a good player in the stock market. You probably heard of portfolio diversification, it is very important to develop strong and stable investments. All of these stock classifications can plan for your diversity and investments across companies of different markets, geographies, and styles. You can have a well-balanced portfolio across various diversification and simultaneously raise money. Each stock has a different feature, and you have a wide choice to know which would best suit you.

Adnoc Drilling, the Middle East’s largest drilling company, has set the price for its listing at 2.30 dirhams per share, implying an equity value of $10 billion. The offering will represent 1.2 billion shares or 7.5% of the company. However, Adnoc Drilling has said that it may increase the amount of stock available. 

The offering comes amid a push by Abu Dhabi to revive IPOs on its stock exchange. The ADX is offering a range of extra incentives, including promises to reduce or waive listing fees and flexibility on the minimum stake size needed for share sales.

Adnoc Drilling has also begun preparations for a potential IPO of its fertiliser joint venture Fertiglobe as sovereign wealth fund ADQ plans to list Abu Dhabi Ports by the end of the year. 

The United Arab Emirates is the third-largest producer in the Organization of Petroleum Exporting Countries and has utilised its oil wealth to expand its economy. The UAE has diversified into tourism and developing global transport and trade hubs. However, these sectors suffered throughout 2020 as the covid-19 pandemic saw a substantial decline in international travel, blocked trade flows, and cut energy use.

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