pennystocks? what happens when stocks IPO?
Jann asks:
I have been advised that a stock is going to IPO this month,somthin bout several co.’s forming a conglomerate, then offering stock shares 4 many X’s the value as long as you buy in before the IPO.buyin lots of pennystock, whats that gonna do 4 me when it IPO’s? PLEASE help me sort this out, hope to chg my future soon.
I have been advised that a stock is going to IPO this month,somthin bout several co.’s forming a conglomerate, then offering stock shares 4 many X’s the value as long as you buy in before the IPO.buyin lots of pennystock, whats that gonna do 4 me when it IPO’s? PLEASE help me sort this out, hope to chg my future soon.
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Stocks, after their IPO, can go up or down.
Be very careful. If you’re putting money into something that you know nothing about, know little about the mechanics, don’t know what will make the stock go up or down and/or can’t afford to lose this money - then this is gambling.
My recommendation is to save your money, invest in prudent investments for your situation. This doesn’t necessarily mean that you can’t take on risk for high returns - it just means that you need to be careful and should probably do more homework before blindly throwing your money around. You work hard for your money, don’t neglect it. Treat it with respect and it will treat you nicely.
Here is some more info on the risks of penny stocks: