|IPO (Initial Public Offer) of a newly initiated but with better future prosperity of different companies keep on releasing in the market. This could be the first sale of stock by a private company to the public. IPO’s are often offered by smaller, younger companies looking for the capital to expand. This could also be issued by large privately owned companies that want to trade publicly.
In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it to determine:
History shows investors who bought equity shares of well-reputed companies during their initial public issues have now earned a lot.
- What type of security to issue (common or preferred)
- The best offering price and
- The time to bring it to market
IPO’s can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future because there is often little historical data with which to analyze the company. Also, most IPO’s are of companies going through a transitory growth period, which are subject to additional uncertainty regarding their future values.
With the proficient team of GIIS Financial, you need to leave worries at our end and be relaxed to get maximum