Top things to know before investing in IPO’s:

Top things to know before investing in IPO’s:

1. Objective Research: As the company is going to public for the very first time, so it becomes difficult to getting information about the company. So, it is advised to go for the company having strong economical background and strong foundations.
2. Company with strong broker: Quality brokerage firms always try to bring quality companies public. So, it is advised to invest in those companies.
3. Read the prospectus of the company: It is advised to ready the company’s prospectus which gets issued before the IPO and also the annual report of the company.
4. Try waiting for lock-up period to end: It is basically a binding contract between the insiders and the insiders of the company, restricting them to sell their shares.

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