Should you invest in an initial public offering (IPO), the first shares offered by a new public company? A client asked me that question recently. I responded that, as is often the case in investing, this depends on a lot of factors.
IPOs of companies that have acquired pre-launch renown, such as Facebook in 2012 or Alibaba in September 2014, draw a lot of media attention. Media outlets tend to focus on how much company founders profit early on from IPOs, and like to show them ringing the bell to open exchanges, chattering endle...
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