5 Tips For Investing In IPOs

Cover of Investing in IPOs

Stock Invest. In the days of dotcom mania, investors could throw money into an IPO and be almost guaranteed killer returns. Numerous companies, including names like VA Linux and theglobe.com experienced huge first-day gains, but ended up disappointing investors in the long term. People who had the foresight to get in, and out, on some of these companies, made investing look way too easy. 

However, no investment is a sure thing. Soon enough, the tech bubble burst and the IPO market returned to normal. In other words, investors could no longer expect the double- and triple-digit gains they got in the early tech IPO days simply by flipping stocks. There is still money to be made in IPOs, but the focus has shifted from the quick buck to the long-term outlook. Rather than trying to capitalize on a stock's initial bounce, investors are more inclined to carefully scrutinize long-term prospects... Continue to read.

Related articles

• Facebook IPO: Targeting $96 Billion Company Valuation (wire.kapitall.com)
• IPO Stock - (e)ADRIENNED (eavalues.wordpress.com)
• All-time top 10 IPOs for Internet companies (seattlepi.com)