Is it good to buy IPO on first day?
- Asked By
- Updated On:14-Sep-2023
- Replies:1
Short Answer
In order to improve the allotment chances, it is best to buy a US IPO on the very first day. Last-minute subscriptions or delays often decrease the outcome.
Detailed Answer
Most of the time investors complain that they weren’t allotted the shares in the US IPO. They made multiple applications, but still no luck. The biggest reason for this is not buying at the right time.
If you have decided to subscribe to an IPO, it is best to do it in the first 2 or 3 days. Applying at the last moment might create troubles with payments or even some technical issues.
Benefits of IPO to Investors
Here are some of the benefits of buying an IPO on the first day or at the earliest to the investors.
- Liquidity
Luckily you get the allotment, and the company goes public, its share price will increase. You can sell the shares anytime you want for profit. If you didn’t get the stocks, they can be repurchased from someone else. Hence, buying and selling increases liquidity.
- IPO Norms
The rules and regulations of an IPO are to protect the investors at all times. In the prospectus every financial and non-financial relevant information is given about the company. Thus, you can say that, there is complete transparency in where you are putting your money.
- Chance to Small Retailers
In the secondary market, small investors or retailers are not given the chance, to invest in stocks. But when it comes to IPOs, everyone is free, and allowed to invest. If you are also a small investor, it is better to use this option.
- Ownership Authority
Ownership authority i.e. the right to vote in the meetings of the company is awarded to every shareholder. Thus, by investing in an IPO you can increase the chances of getting into the ownership pool of the company.
Thus, investing in a US IPO at the earliest is more beneficial to the investors rather than delaying it.
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (0)
In order to sell your US IPO stocks, you have to compare the offer price with the listings. If you believe you are making a good percentage of profits, it is time you sell the stocks.
The major stock exchanges of the United States - NASDAQ and NYSE, open at 9.30 am ET and closes at 4.00 pm ET for normal trading.
Yes, you can sell your pre-IPO shares. There are secondary markets wherein you can easily list and sell your shares to anyone who wants them.
VectorVest is a global stock analytics platform that provides access to 4 different international markets. The platform offers various tools and features for stock analysis as well as investments. VectorVest is not completely free to use as you have to purchase a plan in order to gain access to the tools in the platform.
TradingView offers a 30 days free trial. You can start with their Free Basic Plan to explore this interesting trading platform. In fact, TradingView is a high-end data analysis software, it's understandable even if it charges for its premium features.
The US Stock market operates during the weekdays and remains closed on Weekends i.e. Sunday and Saturday. It means stock trading doesn't happen in the entire week.
INDmoney seems to be ranking high amongst best stock brokers to invest in US stocks from India. You can begin investing in US stocks by opening a commission-free account. Additionally, it provides a safe platform for investing in IPOs of US companies and offers a lot more features.
When you sell US shares in Canada, you incur capital gains tax. Read more to know terms, conditions and exemptions when you sell US stocks in Canada.
VectorVest is an international stocks analytics platform that gives you access to the stock markets of four different countries. The platform provides various facilities such as stock recommendations, timing indicators, and many other trading tools that can be used by equity and derivatives traders. Some of the trading tools such as WatchDog, AutoTimer, etc can be used by stock traders to simplify their trading experience.
Yes, SBI has numerous branches in USA. SBI is one the largest Indian banks as well as an international bank offering services in different countries. It has a total of 10 offices in 4 different states of USA.