Wednesday, October 12, 2016

I do not subscribe to IPO

I do not subscribe to IPO.  IPO means initial public offering.

That means the company is offering shares to the public for the first time.

It does not matter what company is going to list in the stock market, I do not, and will not subscribe to IPO.

The big winners of IPO are the ones who are selling shares, not the ones who are buying shares.

If you happen to own shares in a private company, and the company gets listed in the stock exchange, you can sell your shares to get a big windfall.

The persons who buy your shares may suffer a monetary loss. 

Many companies window dressed their annual reports to make it fancy for listing. 


After a year or more, the true color emerges, and you can see how bad the financial of the company is.

No comments:

Post a Comment