Are IPOs Worth Investing?

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Are ipos worth investing?
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Introduction

• We all are very well excited about new stuff
  coming our way. Be it gifts, new clothes, a new
  smartphone or a smartwatch. We all also love the
  feeling of getting to use something new since it
  is ours, and if it is the first of the kind, we
  love it more.
• That is a similar excitement we see in the stock
  market too when IPOs are announced. People invest
  in IPOs as they feel it will be a start of
  something new, or it will help them build enough
  wealth.
• But, are these IPOs worth investing?

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Why are people excited about ipos?

1. The Myth A company launches the IPOs and people
   presume that the value of the share is much lower
   than the true price. People are also excited
   about the fact that they are the first ones to
   own. Plus, they will be earning big when the
   stock is listed on the bull market.
2. Herd Mentality People tend to follow herd
   mentality since everyone is doing it, we should
   do it too. So, that is one reason why people are
   more excited about buying IPOs.
3. Overhype Of course, if a privately-owned firm is
   new in the market, it has to spend a bit more on
   advertising. Only then you would you know about
   it and only then will you be willing to spend on
   these shares.

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Are ipos worth investing?

• Putting your money in IPOs does not guarantee
  wealth or profits. Do not hear everything in the
  news, marketing and overhypes, since they are
  meant to lure you into the game. But, if you
  really want to make this investment worth it,
  make sure you invest in the right market.
• Researching the company that offers IPOs and
  understanding their business prospects will help
  you make the right choice.

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