A majority of retail investors invest in initial public offerings (IPOs) impulsively, indicating a lack of comprehensive understanding of these public offerings.
Amid the current surge in IPO activity, it was observed that approximately 54% of IPO shares, excluding those allocated to anchor investors, were sold within a week of listing, suggesting a focus on short-term gains over fundamental analysis.
In this article published by LiveMint, I observe that while stocks often surge after listing, they tend to stabilize once the initial trading frenzy subsides. Unfortunately, this means even long-term investors often invest in IPOs without fully understanding their long-term potential or benefits.
Read the full article below.
https://lnkd.in/dJqUY27j
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