IPO, which stands for Initial Public Offering, is a way for companies to raise the level of the company. The function is to become an accountable and more open public company. So, an IPO is an offering of a company’s initial shares to the public. But, what is the risks of investing in IPO
The Risks of Investing in IPO
The risks in this IPO stock is fairly minimal based on the balance. Some of them are:
1. Restricted Lot
The number of lots or the purchase quota for the IPO shares has been determined. The reason is, in general, buyers can only buy a few lots.
This condition is fairly normal. Because the number of lots has been determined by the company. The point is that buyers just come along.
2. There is a Withdraw Time
In this case,IPO generally has a time span for about one week before making a withdrawal (withdrawal of funds).
This means that shareholders must be willing to wait for about one week before finally entering the refund time.
Which IPO should be bought?
The prospective buyers do not have to do an analysis. The most important thing is to know which stocks potential investors are currently interested in.
However, there is also a probability of a profit of 10 to 30 percent on the first day of the trade opening.
On the other hand, IPO shares also have the potential to become dormant or become dormant stocks. This is very commonly known as fake IPO shares.
This is the important point that must be understood. Moreover, by those of you as a trader who is still a beginner.
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