Be cautious

Being cynical is one of the important features to associate in the IPO market. Due to the lack of the available information does create a lot of uncertainty. It’s suggested to approach an IPO with vigilance especially if it’s recommended by a broker then one should be very cautious. Most institutions and money managers overlook the sponsors attempt to sell the stocks. So in such a case it’s possible that the individual investors would get the leftovers that were rejected by the big investors. And if the broker pitches for some particular stocks then there might be a reason behind it. Therefore even if the company is going public it’s difficult to get available shares as the brokers tend to save the allocation for their preferred clients.