Description
Would you think that stock purchased as part of an IPO is more or less risky than stock from a well-established company?
Why or why not?
Explanation & Answer
Thank you for the opportunity to help you with your question! Hi, He observes that work expands so as to fill the time available for its completion.
investing in the initial public offering commonly known as IPOs are often more risky than buying shares of the already well established company. Studies shows that IPOs will only deliver market returns in their first six months of the offering after which most IPOs wind up there by delivering disappointing results to the investors. Buying shares of a well established company is less risky as compared to buying a hot IPO simply because the shares of a well established company has a larger market base therefore there is no speculation. The investors can predict the market without any difficulty.
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