IPO Basics

Some of the things you need to consider before investing in a IPO.

# History of the company . What they plan to use the funds from the IPO. Read the Red Herring Prospectus for sure !
# Who are the underwriters ? IPOs which are big and generate interested are handled by bigger brokerages.
# Check the lockup period , i.e , If after the company issues IPO, company officials, employees have to signup a lockup period so that they dont sell their shares immediately.
# Avoid the hype generated by the underwriters. Research well about the company fundamentals and financials and invest sensibly