What is Kostak Rate ?

by khalid on 22/01/2011 · 0 comments

Indian IPO Market is booming these days. The IPO Grey Market (GMP) is an over-the-counter market where dealers may execute orders for preferred customers as well as provide support for a new issue before it is actually issued.

IPO Grey Market (GMP) work in two ways in India. It decide the premium of an IPO which is not yet listed in Stock Exchange and it also allows investors to sell there application or allocated stocks at certain premium before they list.

Kostak Rate is the term used in this IPO Grey Market (GMP). It is the premium one gets by selling his/her IPO application (in an off market transaction) to someone else even before allotment or listing of the issue.

Stay tuned to BelltheBull Blog for more news on Indian Share Market terms !

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