American Consequences - August 2017

At some point, your friendly local stockbroker may present you with the opportunity to invest in an initial public offering (IPO). In an IPO, a company raises capital by selling shares to market, you're buying it from another investor. But with an IPO, the cash you pay goes to the company. You've probably heard about the IPOs that see a surge in the share price on the first day of trading. But that happens rarely – and it should not be a reason to invest in an IPO. If you're looking at IPOs, it pays to ask these seven questions first... investors. When you buy a stock in the secondary

ASK THESE SEVEN QUESTIONS BEFORE BUYING ANY IPO

By Kim Iskyan

96 | August 2017

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