The pros and cons of Investing in IPOs

There are three types of investors, passive, active, and aggressive. Passive investors invest in Initial Public Offering (IPOs) as an asset class because it gives them diversification. Active investors invest in IPOs to increase their portfolio's performance by taking advantage of short-term price fluctuations. An IPO is a complex process involving the lead manager, issuing company, and regulators. The IPO lead manager is the financial institution that manages the entire process and is responsible for finding buyers for the IPO stock.

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The pros and cons of Investing in IPOs

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