Although many IPOs dramatically increase in price on the first day of trading, what if you can’t get shares in the IPO? Should you buy the stock anyway? While there is often a “pop” in price on the first day of trading, the long run performance of IPOs is less stellar. With the Facebook IPO looming, we can examine the performance of recent tech IPOs. For example, Groupon is down about 18 percent since its November 4, 2011 IPO and professional network website LinkedIn, which more than doubled on its first day of trading on May 19, 2011, is down more 23 percent since. http://finance.yahoo.com/news/look-ipo-stocks-fared-223316207.html
Thursday, February 16, 2012
Should You Buy Facebook after the IPO?
Although many IPOs dramatically increase in price on the first day of trading, what if you can’t get shares in the IPO? Should you buy the stock anyway? While there is often a “pop” in price on the first day of trading, the long run performance of IPOs is less stellar. With the Facebook IPO looming, we can examine the performance of recent tech IPOs. For example, Groupon is down about 18 percent since its November 4, 2011 IPO and professional network website LinkedIn, which more than doubled on its first day of trading on May 19, 2011, is down more 23 percent since. http://finance.yahoo.com/news/look-ipo-stocks-fared-223316207.html
