An IPO gives the public a way to buy shares in a company that was previously private. It also gives the company access to capital and early investors a chance to cash out.
IPOs are often volatile in the first months. Studies show buying into IPOs at the offer isn't reliably profitable for retail investors — waiting for the first lockup period to expire and financials to stabilise often gives a better picture.
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Open Decision Lab →Frequently asked questions
Should I buy IPOs?
Cautiously. Long-term evidence is mixed at best. If interested, treat IPO exposure as a small speculative slice of a well-diversified portfolio.