Should I buy IPO stock? IPOs can be overrated — if a company is a good investment, it’ll be a good investment well after the IPO. In fact, it may even be better to wait until after the IPO, when the price of the stock stabilizes or even drops as the excitement dies down.
What happens to private stock during an IPO?
What Happens to Private Stocks During an IPO?. When a privately-held company with equity backers enters the publicly traded financial markets, the private shares can be treated in a number of different ways. The private backers could sell of the equity shares alongside the company in the debut offering. These ...
Can anyone buy an IPO?
Unless someone is a big client at a brokerage firm, average investors can't buy at the IPO price, says David Schneider, a certified financial planner at Schneider Wealth Strategies. "Allocations of hot IPOs are not in the cards for mere mortals," he says.
