Follow one share

Watch the green money arrow.

You get one share in our company's IPO at **₹600**. Watch where the money goes each time the share changes hands.

The company got its money **once**, in the IPO. Every later trade is between two investors.

Two markets

• Primary market the IPO — The company sells **new** shares. Your money goes to the **company** and pays for its plans.
• Secondary market the stock exchange — Investors trade **existing** shares with each other. Your money goes to the **seller**, whoever they are.

**Remember:** the moment a stock lists, it moves from the primary market to the secondary market, where it trades every day.

Four owners, one share

Press play, or tap each year.

Example names and prices.

Who gets your money?

Tap each situation.

Ask one question: are **new** shares being created? If yes, the company gets the money. If not, an existing owner does.

When the price moves, who gains?

Slide the price.

After listing, the share price moves every day. Does the company's IPO money move with it?

**Remember:** after the IPO, price moves change what **shareholders** own, not the cash the company raised.

A higher price can still help the company later: if it sells new shares again, they are priced near the market price. Example figures.

Check — Question 3 of 4

Who gets the money?

What you now know

• In the IPO (primary market), the company sells new shares and gets the money.
• After listing (secondary market), investors trade existing shares with each other.
• When you buy on the exchange, your money goes to the seller, not the company.
• Price moves after listing change shareholders' wealth, not the cash the company raised.
• An FPO creates new shares (money to the company); an OFS sells existing promoter shares (money to the promoters).