When a privately held company goes public, the initial public offering – known as an “IPO” by investors – is the first price of the company’s stock floated to the public. IPOs can provide an investment advantage because the shares are often priced lower than they will actually trade when they become available on the stock market. The disadvantage lies in the risk of investing in a company without a solid history. Find out about IPOs before they go public to minimize the risk of your potential investment.
1. Visit the NASDAQ website and view the IPO summary page to see current IPO activity as well as upcoming IPOs and IPO filings. Make a list of the companies you wish to research.
2. Browse to the Renaissance Capital website to view an IPO calendar. Click on any company to view a detailed IPO profile. You should find a link to the company’s website included in the profile information,
3. Visit the websites of companies planning IPOs and read the information presented about each company. Look for investor information providing specific information about the firm's history, management and plans for the future. Look for financial report information on the website to learn about the company’s financial activities and profitability in previous calendar years. Look for contact information so you can request more information, if necessary.
4. Consult with a professional broker to get recommendations about upcoming IPOs. An investment professional can provide insights and tips about potentially lucrative IPOs, especially if you lack investing experience.
- IPO calendars change weekly so check them frequently. If market or industry conditions change, a company may change its plans and postpone or withdraw a proposed initial public offering.
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