IPO Quiz 1 – How to Invest in an IPO in India IPO Test 1: Understanding the Basics of IPOs Test your knowledge of Initial Public Offerings (IPOs) with these essential questions. Name Email What is an IPO? A private fundraising event A company's first public sale of shares A method to issue government bonds A process to pay dividends None What is the primary purpose of an Initial Public Offering (IPO)? To raise capital for expansion or debt repayment To expand the company’s workforce To close the company’s operations To compete with international companies None What is the key document investors should review before applying for an IPO, which contains financial and business details of the company? Memorandum of Association Annual Report Articles of Association Draft Red Herring Prospectus (DRHP) None What is the purpose of a Demat account in the IPO process? To transfer funds between bank accounts To hold shares electronically To purchase government bonds To apply for multiple IPOs simultaneously None Which process ensures that funds remain blocked in an investor’s account during the IPO allotment stage and are unblocked if the allotment doesn’t occur? Immediate Payment Service (IMPS) Unified Payments Interface (UPI) Application Supported by Blocked Amount (ASBA) Real-Time Gross Settlement (RTGS) None If you don’t receive shares during the IPO allotment, what happens to the blocked funds in your bank account? The funds are debited as a penalty The funds are refunded via cheque The funds are unblocked automatically The funds remain blocked for future IPO applications None What is one of the most common reasons for rejection of an IPO application? Submitting applications through demat multiple accounts Selecting the cut-off price option Using ASBA Providing incorrect PAN or bank details None What retail investors should do to increase their chances of IPO allotment? Applying with the maximum bid amount Submitting applications through multiple family members’ accounts Using a cheque for payment instead of UPI Submitting the application after the subscription closes None What is the role of UPI in the IPO process? It allows real-time fund transfer to the stock exchange It automates the allotment process It simplifies payment for retail investors It ensures higher chances of allotment None For how many days is the IPO subscription window typically open in India? 1 day 7 to 10 days 3 to 5 days 2 weeks None Please fill in the comment box below. Congratulations! You've completed the IPO Test 1! 🎉 Thank you for taking part. Knowing about IPOs is very valuable in making smart investment decisions. Review your answers and keep on learning to get ahead in investing! Don't forget to spread the word among your friends and colleagues to take the test, too! That's a perfect way to encourage them to learn and deepen their knowledge of an IPO. Try the quiz again to get a higher score or explore more tests to deepen your knowledge of financial markets. Time's up
