IPOs
What is Listing gains?
Hinglish mein padhein: Listing gains kya hote hain?
Listing gains are the profit made if an IPO share opens above its issue price on the first day of trading.
Listing-day price is set in a special pre-open session. Selling on listing day makes the gain short-term capital gain.
Many IPOs list at a discount; past listing gains don't predict future ones.
Related terms
- GMP (Grey market premium)GMP is the unofficial premium at which IPO shares trade informally before listing. It is not regulated and often wrong.
- IPO (Initial public offering)An IPO is when a private company sells shares to the public for the first time and lists them on a stock exchange.
- Capital gains tax (STCG and LTCG)Profit on listed shares held up to 12 months is short-term capital gain (STCG); held longer, it is long-term (LTCG). They are taxed at different rates.