Factors to Consider Before Investing In IPOs


Bangalore: Planning to make money by investing in shares? There are two ways to it. You can either buy them from the stock market, or you can apply for them in a public issue. Public issues provide you with an opportunity for picking up shares at relatively low prices. The newly formed companies usually offer their shares for subscription at par values, whereas existing companies price their new issues at levels which are sometimes as much as 20 to 30 per cent lower than the market price of their existing shares. If you are the kind of an investor who is looking to make money in public equity offers, then you have to make some efforts and become an informed investor. Company's Performance
Factors to Consider Before Investing In IPOs
Before investing in any company, find out for how many years the company has been in business. What is the size of the company? At what rate the company has been progressing over the years? Also find out about the market share and growth. Because investing is about getting effective and safe returns on the hard earned money that you put into shares. Based on the company's performance and their progress you can assume whether investing in that particular company's shares will yield you profit.