Monday, July 19, 2010

Should you Invest in IPOs - Investment in IPOs part 1

Should investors invest in the primary market or the secondary market? Which would
provide investors better returns? What are the precautions that investors should take
while investing in the primary market IPOs?
Historically, the valuations have determined the kind of returns that investors would get
from a stock, irrespective of the fact whether the company is already listed or is a new
IPO. Investors have burnt their fingers while investing in stocks at the peak of bull
markets, whether they have invested in these stocks through IPO route or in the secondary
market. On the other hand, many investors who have invested in IPOs whenever the
stock is attractively valued have made good returns on their investments.
In the past, we have seen many investors investing in the IPOs, even though these IPOs
were expensive or the quality of promoters was suspect and thus losing money on their

Tomorrow, a peak at the Dos and Donts of investing in IPOs. If you think you need immediate advice on your portfolio management, don't hesitate to get in touch with us.

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