In this modern era, there are many ways that we can do to increase wealth. In addition to working and opening a business, one of the things we can do is to invest. Then talking about investment, investment must have many types. Have you ever heard of an IPO investment? Maybe for those of you who regularly follow business news must have heard of Blockbuster IPO. Maybe for those of you who have heard, or those who won’t ask, what is an IPO? And do you have to invest in an IPO? To find out clear information about the IPO, we recommend that you read this article until it’s over.
What is investment?
Before discussing more about IPO investment, we would like to tell you some investment information. Before you choose to invest in an IPO, we recommend that you know in advance what investment is because there may be some of you who do not understand the true meaning of investment.
What is investment? Investment is one way we can do to increase the wealth, assets, or assets that we have today. Investment is our way to increase wealth, where we invest and have a goal to take profits in the future. There are a number of things you can do to start an investment, the first is to have a clear goal, then assess how much capital you can prepare as an investor, and the third understand what risks you can experience as an investor, and the fourth is choose the type of investment that is right for you. If you are a beginner, maybe you are still confused about what kind of investment, you better use financial advisor services or financial planners because they can help you to determine the type of investment that is right for you.
What is an IPO?
At this point we will help you to understand IPO investment, because there may still be many of you who understand what IPO investment is. IPO investment stands for Initial Public Offering and is true if you think it is the same as “going public”. So what exactly is the definition of this IPO investment and how can this investment work? In this IPO investment, the private company will make shares in the company available to investors in the stock market. This stock can be one of the stocks that have just been issued, but they can also be shares that have previously been held by the company’s founder or the company’s initial investor.
Then how to make an IPO investment? Do you know how to make an IPO investment? This time we will also explain briefly what the IPO is so that you can understand more clearly about this investment and can make this investment. If you want to invest in an IPO, then the thing you have to do is become the first investor or the first stock buyer in a company after the company is Go Public. Maybe some people who have participated in IPO investments have proven successful because they are fortunate to buy IPO shares of a company which then their dividends soar. But even though there are many people who have succeeded in the past about IPOs, IPOs still have risks so there must be consideration before you choose an IPO investment.
Strengths and weaknesses of making an IPO investment
After telling you important information about the meaning of the IPO, this time we will deliver some other detailed information about the IPO, namely we will convey the strengths and weaknesses of the IPO investment so that you can consider this IPO investment. This time we will discuss the weaknesses or shortcomings first so that you can find out.
- Experiencing fluctuating stock prices
The biggest drawback of IPO investments is that these investments often fluctuate in fluctuating prices over time so this is quite risky for those of you who just want to try an IPO investment. Usually these IPO investments experience fluctuating price fluctuations and it lasts for quite a long time. Where usually these IPO shares will experience shares that fall from 30% to 50%.
Maybe for true or experienced investors, this is not a big problem. Because usually experienced investors have good principles, it doesn’t matter if stocks decline as long as funding is getting bigger and dividend growth continues to grow every time. But this of course will be a little problematic for those of you who are new investors, and besides that there are also many investors who do not have this kind of thinking because instead of seeing how the business is appropriate, they look more at the market and do not understand in detail the difference between price and intrinsic value of shares.
- Risky enough
For those of you who want to choose an IPO investment, we suggest that from now on you think about it first because behind the tantalizing benefits there are still some shortcomings of the IPO and this you should consider. For investment, we know there are investments that are passive and active, for those of you who want to invest actively rather than passively. Still, IPO investment is not your best choice for investing. Because some people who have tried to follow the IPO investment said that IPO investments often experience a rising bubble. This means that if the value of the IPO in the company increases, many investors tend not to see the return on their investment when they buy IPO shares. Therefore we recommend that you think carefully before you choose to invest in an IPO. You have to find out many things about IPO investments.
A classic view of IPO investment
Now that you know more clearly about IPO investments? Starting from the definition of the IPO we explain it to you, then we also tell about the weaknesses and advantages of the IPO. Now we will help you to explain the classic view of IPO investments that might later help you to make a decision whether you are suitable to take an IPO investment or not?
Maybe someone already knows Benjamin Graham, and maybe there are those who don’t know Benjamin Graham. Benjamin Graham is the father of value investment and is an expert in modern security analysis recommending in the minutes he has, namely The Intelligent Investor, namely investors avoiding all initial public offerings. The reason is? We will explain it. The previous owners tried to raise capital so that they could develop the business they run. They try to monetize their interest in housing planning and various reasons that can produce things namely premium prices that offer little chance to buy your shares at a discount.
And Benjamin also said that hiccups in this business often make stock prices drop in a few years and make many investors think twice before they want to invest in the company they want. This advice is very wise especially for those of you who are an inexperienced investor, we suggest that before you choose to make an IPO investment then you think of a few things first because IPO is not a simple thing because there are many risks that you have to think about. For those of you who are not experienced in investing, especially IPO investments, we recommend that you all often look for a lot of information about investment and ask the right consultant so that they can find out this investment correctly. Benjamin as the father of investment is one of conservative and disciplined security. This ensures that you do not take the wrong investment and that you do not suffer losses when you make a decision to take up your IPO investment.
Do you have to invest in an IPO?
Do you have to make an IPO investment? The answer is that it depends on yourself. Do you have the ability to make this investment or whether you are interested in making this investment or not. The most important thing, you must consult your financial expert so that you can get the best decision.
Tips for IPO investment
Now, you know more information about IPO investment, right? After giving you some important information, of course you start to consider whether you should make an IPO investment or not? Things like this of course depend on yourself because you know how you are capable of investing. For those of you who have started to think about a lot of things and maybe already in the decision to make an IPO investment then this time we will provide information about tips for making an IPO investment. What is the right way to invest in this IPO? Check out the full review.
- Consult your financial planner
The first thing you have to do before making an IPO investment is of course consult your financial planner or financial advisor to ask if your financial ability is suitable for making an IPO investment or not? Maybe there are still many of you who are hesitant, if you are still in doubt, we suggest that you ask your financial planner because they are more experienced and they know which investment is right for you. So than you are wrong, we suggest that you ask in advance or consult with me more so that it doesn’t make you lose and is disappointed if you fail to make that investment.
- Conduct objective research
The second way you can do IPO investments is by conducting objective research, we suggest that from now on you do some research so you can get the right decisions. For those of you who want to make a PO investment, we recommend that you do many things to find information about companies that have gone public. You have to look for it online so that you can find out whether the company is the right company to do your IPO.
Now that is some information that we can share with you all about the right IPO investment. We recommend that you consult a financial expert so that you know if this IPO is one of the right investments for you. We recommend that you not be careless in making a decision whether to make this investment or not. Hopefully the article we provide this time can be useful and useful for you all!
