IPO, FPO, Dividend & Right Share Explained: A Beginner’s Guide to Stock Market Essentials

Learn the meaning and difference between IPO, FPO, Dividend, and Right Share. Get simple explanations of these key stock market terms to boost your financial knowledge in 2025.

What is an IPO (Initial Public Offering)?

An IPO is when a private company offers its shares to the public for the first time to raise capital. It is listed on a stock exchange, such as NASDAQ, NYSE, or NEPSE.

✅ Key Points about IPO:

• IPO stands for Initial Public Offering.
• It allows public investment and company expansion.
• IPOs are often priced attractively to attract investors.

After an initial public offering (IPO), the company becomes publicly traded.

📌 Example: In 2021, Robinhood launched its IPO, making its shares available to public investors.

What is an FPO (Follow-on Public Offering)?

An FPO is a process through which an already listed company issues additional shares to the public to raise more funds.

✅ Key Points about FPO:

• FPO is also called a Secondary Offering.
• Issued after IPO by already listed companies.
• Used to finance expansion, repay debt, or support new projects.
• Prices may be close to market value.

📌 Example: A company listed in 2020 may offer an FPO in 2023 to raise more money for growth.

 What is a Dividend?

A dividend is the portion of a company’s profit shared with shareholders as a reward for investing in the company.

✅ Key Points about Dividend:

• Can be paid as cash or bonus shares.
• Issued by profit-making companies.
• Not mandatory, but often a sign of a strong company.

Frequency: Annually, Semi-annually, or Quarterly.

📌 Example: If you hold 100 shares and the company announces a $5 dividend per share, you earn $500.

What is a Right Share?

Right Shares are shares offered by a company to its existing shareholders at a discounted rate before offering them to the general public.

✅ Key Points about Right Shares:

• Issued only to existing shareholders.
• Offered at a discounted price.
• Helps raise funds without taking loans.

Shareholders may choose to buy or ignore the offer.

📌 Example: If you own 10 shares, and the company offers a 1:2 rights issue at a 20% discount, you can buy 5 more shares at the lower price.

Comparison Table: IPO vs FPO vs Dividend vs Right Share

Term	Purpose	Offered To	Price	Type
IPO	To raise initial capital	General public	Usually lower	Equity Offer
FPO	Raise additional capital	General public	Market-linked	Equity Offer
Dividend	Profit distribution	Existing shareholders	Fixed/cash/bonus	Income
Right Share	Raise capital from owners	Existing shareholders	Discounted	Equity Offer

Conclusion:

Understanding terms like IPO, FPO, Dividend, and Right Share is essential for anyone stepping into the world of investment. These concepts form the foundation of how companies raise money and reward their investors. Whether you’re a new investor or just exploring financial knowledge, this guide gives you clarity and confidence in understanding stock market essentials.

Ready to take your first step into the world of investing?

Start by understanding these fundamental concepts and build a smarter financial future.

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Author: MD Hasanain Mansuri

Learn Stock Market and Its Fundamentals: A Beginner’s Complete Guide in 2025

New to earning? Learn how the stock market works, how to invest wisely, and build financial confidence from day one. Perfect guide for freshers starting their career and wealth journey.

The stock market may seem intimidating at first, filled with charts, tickers, bulls, and bears. But once you understand its fundamentals, it opens doors to financial growth, passive income, and long-term wealth creation.

Whether you're a complete beginner or someone who has heard about stocks but never dared to invest, this article will simplify the stock market for you, covering its core concepts and why learning about it could be one of the best decisions of your life.

What Is the Stock Market?

The stock market is a marketplace where shares of publicly listed companies are bought and sold. When you buy a stock, you're buying a small piece of ownership in a company. If the company grows, your investment grows with it.

Think of it as a digital bazaar for company ownership, where prices fluctuate based on demand, performance, news, and global trends.

Why Learn Stock Market Fundamentals?

Understanding the fundamentals gives you the power to make informed investment decisions, rather than relying on tips or luck. Here's why it's worth it:

• Informed Decisions: Avoid emotional trading and base your moves on data and logic.
• Wealth Building: Smart investing leads to long-term financial freedom.
• Risk Management: Know how to protect your money from losses.
• Market Awareness: Stay ahead in a world driven by finance and economics.

 Key Fundamentals of the Stock Market

1. Stocks & Shares

A stock represents ownership in a company.

Shares are the units of that stock.

Companies issue shares to raise capital, and investors buy them to earn returns.

2. Stock Exchanges

Platforms where stocks are traded (e.g., NYSE, NASDAQ, NEPSE, NSE, BSE).

These are regulated by government bodies (e.g., SEC, SEBI, SEBON).

3. Types of Investors

Long-term investors: Focused on growth and dividends over the years.

Short-term traders: Profit from daily or weekly price movements.

4. Market Participants

• Retail Investors – Individuals like you and me.

• Institutional Investors – Banks, mutual funds, hedge funds.

• Market Makers – Entities that ensure liquidity by buying/selling at any time.

Important Concepts Every Beginner Should Know

✅ Fundamental Analysis

Evaluates a company's value based on financial statements, industry outlook, and economic conditions.

Key metrics: EPS (Earnings Per Share), P/E Ratio, ROE (Return on Equity), etc.

✅ Technical Analysis

Uses charts and indicators to predict short-term price movements.

Common tools: Moving Averages, RSI (Relative Strength Index), MACD.

✅ Bull vs. Bear Market

Bull Market: Prices are rising, optimism is high.

Bear Market: Prices are falling, fear is dominant.

✅ IPO (Initial Public Offering)

When a private company offers its shares to the public for the first time.

✅ Dividends

A portion of the company's profits is shared with shareholders.

✅ Risk & Diversification

Investing in different sectors and assets to minimize loss.

Never put all your eggs in one basket!

How to Start Investing in the Stock Market

1. Open a Demat and Trading Account with a trusted broker.
2. Set Your Financial Goals – Short-term, long-term, retirement, etc.
3. Start with Blue-Chip Stocks – Reliable, established companies.
4. Invest Regularly (SIP in Stocks) – Dollar-cost averaging works.
5. Stay Educated – Read, learn, and follow credible financial sources.

Common Mistakes to Avoid

• Investing based on rumors or "hot tips"
• Ignoring market research and analysis
• Panic selling during downturns
• Overtrading and expecting overnight wealth

🚀 Ready to Learn More? Subscribe Now!

Investing is not a one-time event—it’s a lifelong journey. And the first step is knowledge.

By subscribing to our platform, you'll gain:

✅ Weekly stock market lessons in simple language

✅ Real-world case studies and company analysis

✅ Expert insights and beginner-friendly investing strategies

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✅ Downloadable guides, cheat sheets, and more!

Write your requests in the comment box. I will surely help you ASAP.

Author : MD Hasanain Mansuri

Stylish Real Estate Books for Passive Income| Top 3 Must- Reads in 2025

Discover the top 3 real estate books that teach you how to build passive income, grow your wealth, and achieve financial freedom. Perfect for beginners and investors in 2025.

3 Notorious Books to Master Passive Income in Real Estate. Still, unresistant income through real estate is one of the smartest and time-tested paths, if you’re looking to earn a fortune while you sleep. But like any investment, success comes from understanding the game. The good news? You don’t need to figure it all out on your own. There are important books that can guide you.  Below are three must-read books that can help you  make  unresistant income through real estate, whether you’re just starting out or ready to grow your portfolio. These books combine real- world  perceptivity, practical strategies, and  dateless advice to get you on the road to  fiscal freedom.

1. Rich Dad’s The ABCs of Real Estate Investing by Ken McElroy.

This book is part of the Rich Dad series and is perfect for newcomers. Ken McElroy breaks down complex real estate generalities into a simple, practical way. You’ll learn how to identify profitable parcels, manage tenants, and gauge your investments for long-term wealth.  Why it’s worth your time, Ken doesn’t just talk propositions; he shares his own trip, wins, and miscalculations. The book focuses on the power of cash inflow and how to produce sustainable income over time, not just short-term flips. 

Ready to get started? Add this book to your reading list and start erecting your real estate mindset from the ground up.

 2. Buy, Rehab, Rent, Refinance, reprise( BRRRR) by David M. Greene

David Greene, a real estate investor and co-host of the BiggerPockets podcast, introduces a step-by-step strategy called the BRRRR  system. This book walks you through how to buy underrated parcels, fix them up, rent them out, refinance your investment, and repeat the process, all while earning passive income.  Why this book stands out: It’s practical,  figures concentrated, and ideal for action-takers. You’ll gain tools to dissect deals, understand backing, and grow your portfolio efficiently. 

📚 Take the vault. If you are serious about erecting a foundation and using one deal into numerous, this book is your roadmap. 

3. The Millionaire Real Estate Investor by Gary Keller 

 Grounded on interviews with over 100 millionaire investors, this book uncovers the habits, allowed patterns, and strategies of the most successful people in real estate. Gary Keller( of Keller Williams Realty) dives deep into mindset and decision-  timber, along with practical tactics to find and fund great deals.  Why it’s a game. Changer. It doesn’t just educate you “ how ” to invest, it helps you think like an investor. It blends provocation with solid strategies and long-term vision. 

📈 Want to suppose — and grow — like a millionaire? This book is the ground between where you are and where you want to be in your real estate trip.

 Final study: 

Real estate isn’t just about buying property; it’s about buying freedom. These books can be your silent instructors, guiding you from query to confidence. Whether you want to make a side income or fully replace your 9-to-5, knowledge is your first investment. 

📌 Start reading moment, start earning hereafter. Pick one book. Set a time to finish it this month. Your  unresistant income trip starts with a single runner.

Author: MD Hasanain Mansuri

How to Choose the Right Stock to Buy: 10 Key Factors for Smarter Investing

 Want to Invest Wisely? Discover the Top 10 Factors to Pick the Right Stock Today!

Reading a financial report

Picking the right stock can feel overwhelming, especially in a market filled with hype, volatility, and endless choices. But smart investors know that choosing a winning stock is more science than luck.

Here’s a practical guide to help you make smarter, data-driven investment decisions.

1. Understand the Business Inside-Out

Cement Factory

Before diving into any numbers, ask yourself a simple question: Do I understand what this company does? Invest only in businesses whose models, products, or services you comprehend. A solid business with a simple, sustainable model is often more reliable than a flashy, trend-driven company.

2. Analyze the Financial Health

Strong financials are the backbone of a great stock. Dig into:

• Revenue and profit growth: Look for consistent year-over-year increases.

• Earnings Per Share (EPS): A rising EPS is usually a good sign.

• Debt-to-equity ratio: Too much debt may signal trouble.

• Free cash flow: Indicates how much cash the company has after expenses.

3. Evaluate Valuation Metrics

Don’t overpay. Even great companies can be bad investments if bought at inflated prices. Use these key ratios:

• P/E Ratio – Shows if the stock is over- or undervalued compared to its earnings.

• PEG Ratio – Adjusts for growth, useful in comparing fast-growing companies.

• Price-to-Book and Price-to-Sales Ratios – Reveal how much you're paying for the company’s assets or sales.

4. Consider Industry Position

Is the company a market leader or a follower? Companies with strong competitive advantages (also known as moats) are more likely to survive downturns and dominate long-term.

5. Assess the Management Team

A visionary and disciplined leadership team can make or break a company.

Research:

1. CEO and board members’ experience
2. Past performance and decision-making
3. Transparency in communication with shareholders

6. Look for Growth Catalysts

Growth fuels stock price appreciation.

Look out for:

• Upcoming product launches

• Expansion into new markets

• Mergers or strategic partnerships

• Technological innovations

7. Watch Economic and Market Trends

Your stock doesn't exist in a vacuum.

Keep an eye on:

• Inflation and interest rate trends

• Regulatory changes affecting the sector

• Geopolitical risks and global demand patterns

8. Analyze the Risk

All investments carry some risk.

Assess:

Volatility: Stocks with wild price swings may not suit every investor.

Beta: A stock’s sensitivity to overall market movement.

Company-specific risks: Legal battles, product recalls, bad PR, etc.

9. Use Technical Analysis

If you're a short-term trader, chart patterns and indicators matter:

Support and resistance levels

Moving averages (50-day, 200-day)

RSI, MACD for entry/exit timing

10. Align with Your Investment Goals

Your stock picks should fit your risk tolerance, time horizon, and financial goals. Are you seeking long-term growth, regular dividends, or fast capital gains? Choose accordingly.

Final Thoughts

Successful investing is about strategy, patience, and discipline, not speculation. Don’t chase trends; instead, build a portfolio rooted in quality, research, and personal goals.

Ready to build your portfolio with confidence? Start by applying these 10 powerful stock-picking principles today.

Author : MD Hasanain Mansuri