What is an IPO?

Initial public offerings (IPO) refers to selling stock that is offered to the public for the first  time. This means that anyone can buy shares of the company and make a profit or lose money depending on how well the company performs in the future. It also has a lot to do with PSE approval before listing your company in their system. The best part about IPOs is that for every successful one, there is at least one bad one out there; but remember, we all remember those who made big money from an IPO

The first IPO was for the start-up company Internet Explorer. The company was very successful in  the beginning, but it failed to deliver on its promise and lost millions of dollars. Google came out with an IPO that made the market rich. Microsoft tried to do something similar by buying AOL for $5 billion and then selling it for $36 billion; that created a major stir among people who wanted to invest in the stocks of big companies. But this was just the tip of the iceberg.

 Initial public offerings (IPOs) are structured, formal ways by which businesses make their shares available  to the general public. The most common way the company makes this happen is by going out onto a stock exchange and selling shares to investors who purchase those rights. A foreign business can also become publicly traded through an IPO if it follows local regulations and laws in some way. Here's an overview of how initial public offerings work.

How do I get into an IPO?

 The first person to go to if you want to get into an IPO is your stock broker. If you have an online  broker and don’t see any notifications in your home screen, then it would be best to call them already. As soon as you hear the news of an IPO, contact them already to ask when you can get the shares. Do not wait till the opening date since that would already be too late.

 You can only buy 100 shares at a time and the price varies depending on the when you want to  buy. The opening date for the IPO is usually  announced in May or June and then opened for trading in June/July.

Is getting into an IPO advisable?

 IPOs are great for being able to participate in massive growth, but there are also a number of risks associated with them. The main risk is that you may be investing before the information about the company is fully 'absorbed' by all investors. Add to this the emotional rush from getting into an IPO and knowing that you beat everybody else by getting in early, without any new information about the company.

 Many people are getting involved in initial public offerings (IPO) and that's great. In fact, companies are being created by entrepreneurs with vision, who have the talent and agility to turn big ideas into a reality. However, there is a lot of confusion about investing in an IPO. An IPO has become a hot topic of discussion for the past few years due to the increase in number of IPOs happening worldwide due to new technology ventures coming out of Silicon Valley. There is also increasing demand for real estate investment opportunities and this is pushing up property prices in many countries around the world. This means we all have opportunities both now as well as later on.