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Friday, April 4, 2008

What is Cut-Off Price?

In a Book building issue, the issuer is required to indicate either the price
band or a floor price in the prospectus. The actual discovered issue price can
be any price in the price band or any price above the floor price. This issue
price is called “Cut-Off Price”. The issuer and lead manager decides this after
considering the book and the investors’ appetite for the stock.
Posted by manuworld at 5:23 AM

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Blog Archive

  • ▼  2008 (25)
    • ▼  April (25)
      • hey
      • How is a depository similar to a bank?
      • What is meant by ‘Listing of Securities’?
      • What is an ‘Abridged Prospectus’?
      • What does one mean by ‘Lock-in’?
      • What does ‘Draft Offer document’ mean?
      • What is the role of the Secondary Market?
      • What is meant by Secondary market?
      • What is an ADS?
      • american depository
      • Can companies in India raise foreign currency reso...
      • What is meant by ‘Listing of Securities’?
      • What does ‘Draft Offer document’ mean?
      • What is a Prospectus?
      • What is the role of a ‘Registrar’ to an issue?
      • Who decides the Price Band?
      • What is a Price Band in a book built IPO?
      • What is Cut-Off Price?
      • Who decides the price of an issue?
      • What is an Initial Public Offer (IPO)?
      • precautions
      • Contract Note
      • Stock Trading
      • Demutualisation
      • Stock Exchange

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