2007-11-20 15:49:54 · 8 answers · asked by Harry 1 in Business & Finance ➔ Investing
No, I would say that 'safe' is not a word to apply to an IPO. Especially in heavily hyped businesses (think telecom in the 90's) the IPO makes the founders rich and the stock price takes a dive not long after. Magazines like Fortune and Forbes have written on this.
IPO is Initial Public Offering and that means it is version 1.0 of the company on the market with little history either as a company or as a stock.
2007-11-20 15:55:13 · answer #1 · answered by Mike1942f 7 · 0⤊ 0⤋
I would agree with the others that the IPO is less safe than many other blue-chip large cap stocks.
But then leaving your money in a checking account is even safer than any stock. The problem is that your return is zero.
I've seen many great performing IPOs and some poor ones over the last year or two. Some industries or sectors will generally be hotter than others.
Another factor is that the number of IPOs per quarter goes through phases. A couple years ago there were very few. Now there are many new IPOs every quarter. At some point, the market gets saturated by too many IPOs. This is one reason why the other answerers are so negative; they remember the "saturation" phase when most IPOs fail to perform.
2007-11-20 17:39:22 · answer #2 · answered by Tom H 4 · 0⤊ 0⤋
Yes its very sage to invest in the IPO specially in today's scenario but as far as the technicals are concerned, always go for the IPO which has a very good Promoter background, then the Object of IPO should be very much feasible and achievable and that too in the desired future.
Regards
Vinay
2007-11-21 00:11:10 · answer #3 · answered by vinay 2 · 0⤊ 0⤋
If you are a little investor, STAY AWAY FROM IPO's
If an IPO is thought to be good, it is bought by insiders of the company, insiders of the brokerage, arranging the IPO, and the best costomers of the brokerage handling the sale. Little guys are NOT INVITED.
If the IPO is not thought to be profitable, Insiders of the company do not buy, Insiders of the brokerage handling the IPO do not buy, Big customers of the brokerage are not offered the shares because the brokerage want's to keep them making money, BUT YOU, THE LITTLE GUY, will be sold as much as you can handle.
2007-11-20 17:15:27 · answer #4 · answered by bob shark 7 · 0⤊ 0⤋
Safe is a remote matter. Now a days 'IPO' are coming with very heavy premiums. You need to track their record before investing. If you are new investor, go for the well known investors like Reliance, ITC, L&T etc.,
2007-11-22 17:38:58 · answer #5 · answered by SRINIVASAN R 5 · 0⤊ 0⤋
safe , & good return investment also if good IPO 's allotment of shares given to u.
PLEASE MENTIONED CORRECT DEMAT ID/ACCOUNT NO. & DP ID THROUGH WHICH SHARE WILL BE ALLOTTED TO U ONLY.
please mentioned yor bank account no. for yor refund order through which no other person can draw yor refund money
2007-11-21 03:22:48 · answer #6 · answered by Udit D 4 · 0⤊ 0⤋
not always beecause the company may list below the allotment price. it is always good to take professional advice before investing in any financial product
2007-11-20 17:11:32 · answer #7 · answered by suman 2 · 0⤊ 0⤋
Yes. Same factors as for secondary market.
Apply more than lower limit.
2007-11-21 01:26:09 · answer #8 · answered by Anonymous · 0⤊ 0⤋