what is an IPOwhat is an IPO and how can I compare it to other investing? An IPO happens when a private company wants to issue stock to the public for the first time. An underwriter usually will decide if the company should issue preferred stock common stock and at what price to get the most money from investors. IPOS are a very risky business. I don't recommend ever investing in IPOS unless you know a lot about the company. Do you really want to give your money to a company that you have no clue about and hasn't been in the market more than a few days? When an IPO first starts out the money investors pay goes directly to the company. Later when an investor decideds to sell the shares it is usually traded between investor to investor. One thing you can do to reduce risk in IPO's is too find ones that seem to be easy to understand. Companies that's products would sell well in the current economy will tend to be better IPOS as well. For instance First Solar FSLR has their IPO a short while back and has done well since their IPO. Summing up a market strategy for IPOSFirst solar provides a popular product of solar panels right when oil and gas is high. It's also easy to understand their business in that they make solar panels. So this is my only advice when picking IPOS they have to be simple to understand their business with potentially high demand products for the current economy. Bellow I have a list links to tools and sites that you can use to try and help you if your an ipo investor on what is an ipo and which ones to buy.yahoo ipos CLICK HERE-provides a good list of ipos by pricing, fillings, and withdrawals CLICK HERE IPO list with info-Provides lists of IPOS with a brief definition of what the company does |