Initial Public Offering (IPO) is a mechanism for companies to raise the level of companies to become more open and accountable public companies. In other words, an IPO is an initial public offering of a company. This mechanism becomes a win-win solution mechanism for the company because more parties involved means that capital becomes more stable with the possibility of managerial improvement over time. In this way, the sustainability of the company is also better maintained. On the other hand, the public will also have more promising and certain alternative investment instruments. New Investors must understand about this type of stock if they want to know Como investir na bolsa de valores with more choices.
By reading the previous information, of course, many people are tempted to get involved in IPO stock investment instruments. However, you must understand correctly the ins and outs, especially if still classified as a beginner in this business.
The stock business is the same as any other business. Need to be studied in depth. Buying IPO shares can be the first step. It is because IPO shares are usually sold when market conditions are bullish (experiencing an upward trend).
However, before that, understand first and the lack of buying the following IPO shares so there is no mistake in moving forward.
Advantages of Buying IPO Shares
IPO shares are loose because the price already has a benchmark. Unlike the conditions on the exchange where the players themselves must know what price to buy.
The possibility of IPO stock profits is high because it is offered during bullish conditions. So that means the possibility of a high price at the time of opening.
Specifically for IPO shares, the analysis can be done to the extent of market interest alone, in contrast to shares on the stock exchange. Players must understand very well what analysis and strategy will be applied.
Risks of Buying IPO Shares
Lot or allotment of IPO share purchase has been determined. As an illustration, Person A bought 100 lots of IPO shares, but apparently only got 1 lot. This is normal because the number of lots is determined by the issuer, not the buyer.