IPO refers to the initial public offering of shares (IPO for short), which refers to the process that enterprises issue shares to investors for the first time through the stock exchange in order to raise funds for enterprise development. The subscription of new shares is to obtain the low-risk price difference income in the primary market and the secondary market, and does not participate in the secondary market speculation. Not only the principal is very safe, but also the income is relatively stable, which is an ideal investment choice for stable investors.
The subscription of new shares is the investment method with the lowest risk and stable income in the stock market.
The subscription of new shares is suitable for investors who have certain requirements on liquidity and risk tolerance, such as secondary market investors, bank financing investors and large enterprises and companies with idle funds.
After the subscription of new shares, the appreciation difference (capital gain) can be obtained through listing transactions, while the subscription of new bonds mainly depends on interest income, so the listing transaction volume is small and it is difficult to realize. Buying stocks is a company shareholder and buying bonds is a company creditor.