Access IPOs, trade their shares in the first public appearance and after.
To participate in an IPO, register with Prime Holdings and activate your account with us.
What is an IPO?
IPO stands for initial public offer, and it is the first time a company makes its shares available for the public to be bought, sold or traded. Many companies are traded in the gray market before they go public. Anyway, most of them go through a prosperous time after going public, because the value of their stocks go up. It is very important to do a deep research before you decide on the IPOs you want to participate in.
Private companies go public by offering shares on a security exchange like NASDAQ. They go public for many reasons like becoming more liquid for the investors, raising and maximizing shareholder value, reinvesting and growing business and using stocks as a currency for acquisitions.
Traders like volatile assets, but more they like the predictability of the price movement of the asset. It matters more and you should take it into consideration while evaluating trading opportunities. When you analyse the direction of a stock or other asset, you need to know as much as possible, like knowing both the potential for a move and the direction of this movement. The more predictable a move is, the better the asset is.
There is a difference between IPO traders and IPO investors. The difference is where they plan to exit the IPO. Investors don’t usually have a plan when to exit the IPO. They just enter and invest. Until when it comes a moment the IPO messes it up and the investor abandons it. Traders plan their trading and they usually know when they will exit. They do not wait until the IPO messes it up to abandon it.
What does it take to be successful while trading IPOs?
IPOs tend to be more volatile in the market compared to other assets. While they provide greater potential for profits, they also come with high risk, which need to be managed.
There are two ways to manage risk, by taking under the control the size of their positions and by deciding about time frames and exits. The shorter the time the position is kept opened, the less the risk, and also the less is the potential for gain.
A bigger position will prepare for a higher risk and higher profits. You need to always have a plan while trading IPOs. You need to have an exit strategy, especially if you are a beginner in the financial market. IPOs do not always go as expected, you need to act in the right moment in order to cut your losses.
Why trading Stocks with Prime Holdings?
24/5 Support on technical issues and education
Desktop, web and mobile trading apps
Excellent customer support service agents
Transparent trading conditions, no fees, no charges
Stop loss and take profits functions available
Negative Balance Protection & SSL security standard available
- Grey market
- IPO VS FPO
This market is named by the stocks which are bought or sold without being public yet.
Follow on Public Offer is the process through which the company delivers more shares into the market in order to grow its value. It happens also when any of the biggest shareholders sell the shares to other shareholders in the market.
An IPO is the first step before the company is officially available for the public to be traded. A FPO stands for follow-on public offering, and it has to do with the amount of shares that the company issues after an IPO.
SME-IPO is a popular way through which a company gathers funds from different sources and is listed in the stock exchange. Many trades who invested their capital in SME-IPO have earned considerable returns.