An IPO, or Initial Public Offering, is the gateway for firms to raise large amounts of capital. IPOs attract excitement.
Famous IPOs include Google in 2004. These reshaped global markets. On the other hand, IPOs like WeWork caused disappointment.
The advantages of IPO investing potential for rapid price growth. Investors dream of finding the next Amazon.
However, risks make IPOs unpredictable. Newly listed companies are often unprofitable. Lock-up expirations increase volatility.
Sectors with hot IPOs include fintech. For example, Airbnb attracted institutional investors.
Investors should not follow hype blindly. Reading SEC filings clarifies valuations.
Ultimately, morgan stanley direct lending fund stock IPO investing suits risk-tolerant investors. A portfolio mixing dividend payers with biotech IPOs manages risks effectively.
