Jasmine
VIP Contributor
For a lot of people, IPO is a great opportunity to get into stock market because you can buy stocks for relatively cheaper price which can go substantially up once the IPO closes and the stocks begin to trade regularly on the stock market. Buying IPO can be good for short term investors as well as long term investor. However, not many people realize that IPO can also be a scam.
Sometimes when a company releases IPO they overvalue their price. The price of the company’s share is higher than the actual price. When people pay more for the stock that’s its true value it is definitely a scam.
Sometimes IPO is launched by companies that do not have any good performance in the real market and their performance exist only on papers. They trick or bribe the security board to get listed for IPO.
Once these companies begin to trade in the real market, the stock price will go down and you will lose money.
Sometimes when a company releases IPO they overvalue their price. The price of the company’s share is higher than the actual price. When people pay more for the stock that’s its true value it is definitely a scam.
Sometimes IPO is launched by companies that do not have any good performance in the real market and their performance exist only on papers. They trick or bribe the security board to get listed for IPO.
Once these companies begin to trade in the real market, the stock price will go down and you will lose money.