July 20, 2010

What benefits are there for investing in an IPO over buying on the first day it trades on the stockmarket?

By Planet Wealth

Topics: Uncategorized | 4 Comments »

4 Responses to “What benefits are there for investing in an IPO over buying on the first day it trades on the stockmarket?”

  1. lowrider Says:
    July 20th, 2010 at 10:20 am

    If you buy it pre public offering you can sell it during the initial frenzy for more than you paid for it. Other than that most IPO’s are not a excellent bet. Within days IPO’s usually tank and don’t rebound unless the company does something spectacular.

  2. moshydog Says:
    July 20th, 2010 at 10:20 am

    usually there is quick movement (usually upwards) during the first few days of trading. depends on the risks.

  3. strange_raga Says:
    July 20th, 2010 at 10:20 am

    generally u get stocks on cheaper price in IPO then on the first day.
    e.g. Mahindra Tech

  4. ColP Says:
    July 20th, 2010 at 10:20 am

    Sometimes you can get them at a discount in the IPO compared to the official issue price and you can usually (I reckon) avoid brokerage fees.
    Ignore any attempts to generalise on the behaviour of an IPO on early trading, they can open high low or spot on or do anything at all, it all depends on the nature of the company and how the trading masses are feeling at the time

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