I've Covered Many IPOs for The Motley Fool. Here's What Most Investors Get Wrong.
There's no need to rush after IPO stocks.
Overview
Investors love initial public offerings (IPO). An IPO is when a private company goes public for the first time, and, in theory, it is the best time to buy shares. However, that's not always the case. In fact, in many cases, it's best to avoid IPO stocks. Here's what most investors get wrong.
An IPO is the first time that any outside investor can buy shares of a company's stock on an open market. Before an IPO, investors usually provide private seed money. These days, there are funds that offer access to private equity, providing retail investors with an early channel to invest in companies before they go public. But in general, an IPO is the first chance to invest in a company.
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Originally published at www.fool.com.