Why not everyone invest money on IPO instead of shares?


IPO
Cara asks:

Why not everyone invest money on IPO instead of shares? When people have money in their hands why dont they invest on IPO instead of shares. For example Reliance Power is starting the IPO with the Rs. 450 each and according to the market on the listing date share value will be 800 to 900 the same. Then why dont every one invest on IPO to earn very fast with in the two to three months. Why what is this logic. People invest on shares but not on IPO . On the listing date every share is going to be high then why cant we invest money on IPO’s. When iam having around 1 Lakh rupees with me doing nothing. Other than mutual funds i should go for ipo or shares give your answer in detail my dear friends

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2 Comments to "Why not everyone invest money on IPO instead of shares?"

  1. Elly

    IPO is risky..that’s why

  2. Inez

    The public does not get good prices on IPOs. In fact its difficult for the public to even get into an IPO.

    The people that get good prices on IPO issues are company insiders, investment banks, underwriters, and other professionals.

    That’s the reason everyone doesn’t get into an IPO.

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