Guides · Stocks, ETFs and markets
What is an IPO (initial public offering)?
In short: An IPO is when a company sells its shares to the public for the first time. It is often heavily publicised, but buying on day one is risky: prices can swing a lot in the first months.
Why go public
To raise money to grow and let founders and early investors sell part of their stakes.
For individuals
You can sometimes subscribe through your broker. The price history is very short, which makes forecasting hard: the radar requires at least one year of history.
The hype trap
A much-awaited IPO can jump on day one and then decline for a long time.