IPOs are Initial Public Offerings or the primary share of a new company that you can buy before it is listed as a publicly traded company. IPO shares are relatively cheaper than normal shares. The value of IPO share is done on the basis of the company's worth. A company can release an IPO only after getting approval from the security board, so it is relatively safe to invest.
Do You Frequently Buy IPOs
- Thread starter nomad
- Start date
I have not engaged in buying IPOs because I do not understand how it operates and I don't like to invest my money on what I have a little amount of knowledge about.
I bought IPOs frequently many years ago and I was able to make good money because I sold them immediately when they are listed in the market. I seldom buy them nowadays because the I find the profit is no longer that attractive.
No, I have never purchased IPOs. They may require you to follow certain kinds of terms and conditions before you could buy them, just like when you purchase regular shares. What if if IPOs never get registered on the stock exchange? What would happen in that case?
- Thread starter
- #6
That's a good strategy, you should try your hands only when you know the market. If you start without knowledge and skills, you might end up making a huge loss. By the way IPOs are less risky assets.
Buying an IPO stock is very risky and there are many things that you should consider. It is not that easy. The current activities of a company could determine its future. many companies launch an IPO and never progress by the passage of time. This leads to disaster for investors.
But I have tried it and I have often succeeded in making profits especially for short term investments, but sometimes I also lose. I have known and invested in stocks since I was studying at the economics faculty.
Let alone buying IPOs frequently, I am yet to buy shares in any IPO. Several factors are responsible for this scenario. One, I lack the requisite funds to invest in this risky option. I have also seen people incurring losses through IPOs.
Surely buying IPOs could be profitable. However, as I mentioned earlier, this depends entirely on the future of the company. The future of the company depends on the current policies and financial activities of a company. So, it is much trickier than many people may think.
IPOs will always be sought after by investors, especially IPOs that have promising potential, and it would be better if investors could buy initial shares on the primary market at a cheaper price, for novice investors they often sell IPOs when shares are released on the secondary market, so they only take little profit.
