How Do You Take Advantage Of A Company Going Public?
When a company first offers its stock to the public, it is taking a serious risk. Private companies do not have to worry about public perceptions; public companies do have to worry about the financial press hurting their share price. As an investor, you can make money during this movement from private to public, but you need to properly research the company to know you are making the right decision. In order to take advantage of a company going public, you must thoroughly research the company and its position in the market. While many companies go public after establishing themselves in the marketplace, others simply go public to raise money. You definitely do not want to purchase stock from a company that is not going to do well. Each year, many companies go public that do not succeed. After you have researched the company that is going public, consult a stock broker to see if he has any ideas about the stock. Ask him what people are saying on Wall Street and in the financial press. I
