I am pretty sure you can't buy stocks and shares directly from a private company that is preparing to go public. The share market is more-or-less a string of relationships. A private company’s capital, which is divided into equal parts called shares, is provided to the public through a platform - the share market. The share market links the company that is selling the shares to the licensed broking company. The licensed broking company allows investors to buy or sell these shares. The share market monitors the companies listed in public while the licensed brokers deal with the public investors. Therefore, we can trifurcate the entire concept into three relationships. First, is the relation between the private company and the stock exchange. Second, is the relation between the stock exchange and the authorized broker. Third, is the relation between the authorized broker and the public investor.
For a company to be listed in the share market, they must comply with certain stringent requirements before they offer shares of their company to public investors. Once they meet the requirement, they get listed publicly in the stock exchange where units of ownership of their company are sold through shares. This process of being listed publicly in the stock exchange for the first time is Initial Public Offering. Click here to know more www.angelbroking.com/ipo
