How do I go about investing in shares in companies with IPO?
Tangela asks:
which period of the year do I start to invest, and the type of companies to invest in?
which period of the year do I start to invest, and the type of companies to invest in?
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Alex,
I’ve invested in a few IPOs myself. IRBT and GSAT to name two.
Generalyl, an IPO will shoot up in value (look GOOG) and then drop to a level below the IPO price (NOT GOOG) That is where you want to buy in.
I think I’d be more interested in why you want to invest in an IPO. If you already have 3-6 months in cash reserves as an emergency fund as well as other more stable investments then I’m all for it. The real problem comes in when you account for your time horizon as well as your expected rate of return. Most IPOs won’t do very well for their first couple of years…you may want to wait a few months until you can take a look at their financal documents and trendlines.
Not all IPOs will be Google. Only invest money that you are willing to lose in IPOs.
If you still want to invest in an IPO, check out GSAT, is a great company and on the up and up….just do your own due dilligence.
Talk to your brokerage firm.