Hello guys i am new here i would like to know (1)how does a company decide IPO? (2)if the stock value increases then what will there be profit for the company?because since it has already sold the stocks to investors (3)suppose if price of a stock decreases to zero then will the investor of the stock have any ownership towards the company & suppose if stock value increases then can the investor sell the stock?.please help me with these questions.Thank you very much.
The questions you have asked are too too too too too basic, best is get some education about the subject Googling your doubts.
Let me try to explain to my ability ...
The price of the shares of a company reflects the "working, profitablity, future prospects or lack of them!! The increase or decrease in the price of the shares of a company does not affect the profitablity of the "company". It may affect the "promoters" of the company who hold shares in the company and also affects the general share holds. The company does not gain by any increase in the Value of Shares in market.
There are set procedures for IPO. You may refer to SEBI website. Comanies requiring more capital to expand or initiate there business go for an IPO. The price of a stock cannot decline to zero, on NSE it may decline to 0.05 Paise!
and in some cases in BSE it may to 0.01 Paisa. Ownership remains , value erodes!!