IPO Quiz 13 - Your IPO Investment Style for Long-Term Gains

Welcome to your IPO Quiz 13 - Discover Your IPO Investment Style for Long-Term Gains

Are you investing in IPOs or planning to start soon? Think you know how to spot the next big winner? This quiz is designed to help you assess your understanding of IPO investing with a long-term perspective—the smart way to build wealth.

📈 Whether you're a beginner or a seasoned investor, these questions will sharpen your approach to IPOs, teach you to look beyond the listing day hype, and help you make informed, long-term decisions.

Take the quiz below and find out how ready you are to grow your portfolio with smart IPO strategies!

1. What is the primary reason investors consider IPOs for long-term wealth creation?

High listing day profits

Tax benefits

Opportunity to invest early in a potentially growing business

Fixed returns

2. Which document should investors study to evaluate the financial health of an IPO-bound company?

Annual Report

IPO Allotment Letter

Offer for Sale (OFS) Sheet

Draft Red Herring Prospectus (DRHP)

3. Why is holding an IPO stock long-term often more profitable than selling on listing day?

It avoids brokerage fees

Long-term investors receive dividends

Listing day prices are always low

Successful companies grow in value over time

4. What sector is expected to benefit from India’s push toward sustainability and clean energy?

Telecom

Real Estate

Renewable Energy

Textiles

5. Which of the following is NOT a reliable valuation metric while evaluating an IPO?

P/E Ratio

EV/EBITDA

Dividend Yield

P/B Ratio

6. What should raise a red flag while evaluating IPO promoters?

Previous startup experience

Backing from mutual funds

Unethical business history

Holding majority stake

7. What does portfolio diversification in IPO investments help with?

Tax evasion

Reducing risk

Increasing brokerage

Avoiding allotment delays

8. Which of the following is an example of a multibagger IPO success story in India?

Yes Bank

Jet Airways

Infosys

Suzlon Energy

9. Why is understanding the business model of a company crucial before investing in its IPO?

It predicts IPO subscription rate

It helps in applying early

It influences listing price

It reveals if the company has long-term growth potential

10. What can high debt-to-equity ratio indicate in an IPO-bound company?

Potential liquidity risk

Strong profitability

Low valuation

Institutional confidence

11. What role does market sentiment play in IPO performance?

It guarantees long-term success

It decides the face value

It ensures accurate valuation

It influences short-term listing performance

12. What’s a smart strategy for long-term IPO investors?

Track company performance regularly post-listing

Buy and sell within a week

Follow social media tips

Exit at first profit

13. Which of the following sectors gained momentum due to the COVID-19 pandemic?

Aviation

Healthcare

Hospitality

Automobiles

14. What does a low Price-to-Book (P/B) ratio typically indicate?

Potential undervaluation

Company is overvalued

Strong dividend payout

High debt levels

15. What is the ideal mindset for IPO investment for long-term growth?

Listing day trading

FOMO-based investing

Following market rumors

Research-driven and patient investing

Quiz Completed! Great Job!

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