There’s nothing like the debut of a new product to get investors’ adrenaline going — and that’s why IPOs are such a major stock market event.
IPO stands for initial public offering, and it’s the process of a private company going public. Depending on the company, an IPO can cause quite a buzz and draw attention from retail investors and financial experts alike.
Participating in an IPO may therefore be on your financial bucket list. But there is a lot more to it than choosing which one of your favorite companies to give your money to. IPO investing is a big gamble. In fact, the financial experts we spoke to recommend proceeding with caution — or refraining altogether.