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IPO Stock News And Analysis: Find Today's Top New Issues

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The biggest stock market winners typically make their major price moves within a few months or years of their initial public offering ( IPO ). So it pays to identify and track companies that are getting ready to go - or have recently gone - public.

IPO News & Analysis | IPO Leaders Stock List | Filings & Prices Of Recent New Issues

What Is An IPO?

An initial public offering or IPO is when a privately-held company makes its shares available for trading on public markets, such as the New York Stock Exchange (NYSE) or Nasdaq.

[ibd-display-video id=2102289 width=50 float=left autostart=true] Going public is a way for a company to raise capital, and can offer opportunities for secondary offerings of shares in the future. An IPO can also be an opportunity for venture capitalists and other early investors to cash out and take profits. After a lockup period (typically from 90 to 180 days from the initial public offering), employees with vested stock options can also sell their shares on the open market.

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Risks And Rewards Of Buying IPO Stocks

In the right market environment, newly issued stocks can rise quickly, particularly those showing exceptional earnings and sales growth and strong demand among mutual fund managers and other large investors.

Just four weeks after its August 2004 market debut, Google-parent Alphabet ( GOOGL ) broke out of an IPO Base and rose over 300% in just 15 months.

But new issues can also be quite volatile, and not all of them generate such impressive gains.

Facebook ( FB ) (May 2012 IPO) and Alibaba ( BABA ) (September 2014 IPO) are examples of high-profile new issues that initially struggled.

So before buying an IPO stock, be sure to do your homework .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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