Instant Profit Opportunity (IPO) Really ?

IPO (INITIAL PUBLIC OFFERING)

The first stock sold by a company when it becomes a publicly traded entity. IPOs receive much more attention than they deserve, in part because the hottest IPOs can make their purchasers a quick profit by soaring soon after trading begins. This was especially true during the heat of the 1998-1999 bull market, when the acronym “IPO” seemed to stand for “Instant Profit Opportunity.” For the most part, though, early gains usually disappear rather quickly. IPOs are risky investments, as they are usually represented by newer companies without proven track records.