An initial public offering (IPO) is the first sale of stock issued by a company to the public.
Going public means a company is switching from private ownership to public ownership, where public shareholders get the right to vote in company decisions.
Going public is a great way for a company to raise cash. Getting in on a hot IPO is very difficult, if not impossible. Aftermarket buying is your best bet on getting shares. (Unless you have a large account with the underwriter, then request an allocation from them!)
The process of underwriting involves raising money by issuing new securities to investors. Companies hire a syndicate of investment banks to underwrite an IPO.
An IPO is difficult to analyze in the market because there isn't a lot of historical info. The MUSCLE Method is the best way to analyze these deals before they start trading.
Lock-up periods prevent insiders from selling their shares for a certain period of time. The end of the lockup period can increase shares available and lower the stock price, usually an easier time to buy shares.
Good times to invest can include before the release of street research, and when the lock-up period expires.
When researching and investing in IPOs, there’s a lot to take in.
It’s almost impossible for an individual investor to track the entire IPO market, filter through to find the winners and get in on those deals at the right time without quitting their day job.
Even with our team of IPO analysts it isn’t easy. That’s why we’ve streamlined our approach to analyzing IPOs and made it available to you. The MUSCLE Method of IPO analysis is the single most effective IPO investing strategy you will ever need.
The MUSCLE Method is the backbone of our new platform IPO Pro. With IPO Pro you will have the tools you need to analyze winning deals and keep track of new activity in the IPO market.
Try it out for yourself with a free 7-day trial today.
