Should I Keep Waiting For a Market Dip Before Buying an IPO?
A market dip does not influence an IPO enough to warrant waiting for one. However, if you do decide to buy with IPO, there's a possibility of being greatly rewarded.
Published April 22, 2021.
An initial public offering (IPO), as the name implies, is the first time (initial time) a company sells (offers) its stock to the general investing public. So, you do not buy IPOs on the stock market; you buy IPOs directly from the issuer. If you got this right, then stay on track.
I admire IPOs. You can research them, look at their history, check their owner and his reputation. Based on those facts, you can imagine the growth potential. There’s a reason why they are going IPO, they want to grow their financial funds and breakthrough their limitations.
Now to answer the question, I doubt a market dip will not influence an IPO enough to make a difference.
Why?
Mainly because the IPO companies are looking for more funds.
One of the better IPOs in recent history I can include is Zoom, DoorDash, and Facebook.
However, keep in mind that there may be bad IPOs. For example, Uber decided to go public and their shares at the close of the market dipped 7% in comparison to the starting shares.
Successful companies regularly go public, yet sifting through the riffraff and finding those with the most potential is no easy task. If you find the one with real potential, be sure that by buying it with IPO price, you stand a chance of being rewarded pretty big.
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