Question
Which of the following statements about IPO listing
gains is correct? A. If the stock lists at a price higher than the allotment price, the difference is considered a listing gain. B. Oversubscription of an IPO automatically ensures listing gains for investors. C. Listing gains are recorded in the issuing company’s Securities Premium account.Solution
When shares allotted in an Initial Public Offering (IPO) begin trading on the stock exchange, the first trading price is called the listing price. • If this listing price is higher than the allotment price, the difference is termed as a listing gain for investors (Statement A → True). • Oversubscription reflects strong demand but does not guarantee listing gains, since the actual listing price depends on market conditions, demand-supply dynamics, and investor sentiment (Statement B → False). • Listing gains accrue to investors, not the company. Once shares are allotted, any change in market price has no impact on the company’s accounts. Therefore, such gains are not recorded in the company’s Securities Premium account (Statement C → False).
If the shortest distance between the shop and both Alok’s and Sameer’s house is considered, then the shop is closer to whose house?
Odd one out
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380, 552, 870, ?, 1406
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Butterflies : Lepidopterist
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