5 Tips for Investing in IPOs
Pick a company with strong brokers
It is sensible to choose a company with a strong sponsor because quality brokerages might get some quality companies into public. Do not select smaller brokerages as they might be willing to sponsor any company. Like reputed company Goldman Sachs will choose to sponsors a better company than other smaller firms. The smaller brokers have smaller client base and so they make the process easier for the individual investor to purchase the IPO shares of non profitable companies as well. The large brokerage firms don’t allow the first investment to be an IPO as the long standing established customers get to invest on IPOs.
