Skyways Air Shares List Below Expected Price
Listen to the story
Skyways Air Services is a new company on the stock market. Its shares started trading today.
Before the listing, some people thought the shares would go up by 23%. This guess used a number called GMP.
But the shares did not go up. On the NSE, the shares listed 10.1% lower than the IPO price. On the BSE, the shares listed 9.78% lower.
An IPO is when a company sells shares to the public for the first time.
The NSE and BSE are two big stock markets in India. Companies sell and buy shares there.
This news shows that share prices can be different from what people expect. Sometimes shares go up. Sometimes they go down.
People who buy shares must know this can happen. It is part of buying and selling shares.
Vocabulary4 words
- GMP
- a number that shows what people think a new share price will be before it starts trading
- NSE
- one of the big places in India where people buy and sell shares
- IPO
- the first time a company sells its shares to the public
- BSE
- another big place in India where people buy and sell shares
Quiz
Answer key
1. A 23% rise 2. 10.1% lower 3. False
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Skyways Air Services is a new company on the stock _____. Its shares started trading today.
Before the listing, some people thought the shares would go up by _____%. This guess used a number called GMP.
But the shares did not go up. On the NSE, the shares listed 10.1% _____ than the IPO price.
On the BSE, the shares listed 9.78% _____.
An IPO is when a company _____ shares to the public for the first time.
The NSE and BSE are two big stock _____ in India.
This news shows that share prices can be different from what people _____.
People who buy shares must know this can _____.