Certified Financial Technician, MSTA / IFTA / CMT & Founder & CEO of LiberatedStockTrader.com & GreatWorkLife.com
When a private company decides to go public, it embarks on an exciting journey called an Initial Public Offering (IPO). An IPO is like a grand opening, where the company presents its common stock to the public for the very first time. This gives regular investors the chance to grab a slice of the company pie. It's a pivotal shift from being private to stepping into the public spotlight, unlocking a treasure trove of affordable capital. For investors, IPOs offer a front-row seat to a company's debut on the public stage. These opportunities are priced based on a mix of factors, such as company worth and market interest. Once trading kicks off, the initial price can sway dramatically, leading to what's known as the "IPO puzzle," where soaring first-day returns and sizzling market hype come into play.