why is it safe to invest in initial public offerings?
Valencia asks:
hello all,am doing job wid reliance money,so i want to clear my doubts abt share markets,ipo’s n new fund offers
hello all,am doing job wid reliance money,so i want to clear my doubts abt share markets,ipo’s n new fund offers
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for most companies its not safe to invest their IPO.
A company going public doesn’t have any bad news, if they did they wouldn’t be doing a IPO. Investors wanting to make a fortune buy in and are usually rewarded with stock at a incredible low price.
IPO’s are not safe. They are a gamble. More stocks go down after their IPO than go up. Its nearly impossible to value a company accurately before they go public.