What are the things to consider before buying an IPO?

[Suba]

Initial Public Offering (IPO) is the sale of initial shares of a company to the public both online and offline before the shares are launched and traded on the stock exchange. The purpose of an IPO for a company is to raise funds, while our goal in buying an IPO is to receive a share of profits or dividends, also hoping to get capital gains.

Based on the information I got, IPO shares have a high risk, because they are covered with traders' speculation. while IPO stock liquidity is generally low, and stock price fluctuations will be high. So if you are going to buy IPO shares, what are the things to consider?

 

[Magnus2022]

I consider IPO as high risk investment. I prefer to buy shares that have some level of acceptance. Though it is cheaper to buy IPO but the risk is high. About new companies that offered their IPO, about 45% use to fail. About 6% use to make good revenue in 3 years of operation. IPO is not my type of investment.

 

[hastral45]

Considering factors or not considering actually lies on how far you know about the IPO. You don't just buy any IPO released into the market. I think you should contact your financial advisers for guidance.

 

[Reedex]

The most important thing to consider before buying an IPO is the financial stability of the company and it must have a good financial records.

 

[eldavis]

I do not really know much about this but i believe this should still apply in a situation like this. This first thing you should look into is how long the Business has been in operation and their financial track records.

 

[Yohanna]

The most important thing to consider before buying an IPO is the financial stability of the company and it must have a good financial records.

Conducting research on the financials of the company is extremely important.

 

[Bisolami]

I consider IPO as high risk investment. I prefer to buy shares that have some level of acceptance. Though it is cheaper to buy IPO but the risk is high. About new companies that offered their IPO, about 45% use to fail. About 6% use to make good revenue in 3 years of operation. IPO is not my type of investment.

For real?
This is informative and I will check more about it.

 

[uptrendfinancialsignal]

Conducting research on the financials of the company is extremely important.

It is important to carry out proper investigation on the status of the company before engaging in such investment.