What is trending now in the market is IPO or initial public offering where the small cap investors are among the biggest beneficiaries. The IPO market was observed to be tough in the past years, but today, this market is changing and investors are again watching the movement of this market.
Know that IPO is a popular method of taking a company public whenever a company is planning to raise funds to expand its business and for other purposes. This is the activity where companies would go for an initial public offer wherein they offload their shares in order to raise money from the public.
Generally, many of these IPO companies are growing and thus their stocks are of great importance to small cap investors. So, when these private companies decide to go public, there is a lot of major decisions to be made. A companys management from venture capitalists, angel investors and private equity firms, all of their founders would want the returns of their investments to be of the highest possible. In order to get the maximum return of their investments, especially for the angel investors and venture capitalists, they pay a lot of attention to the details of the transaction.
Be aware that private companies would avoid offering an IPO when the stock market is down, and this is because cost conscious investors will not be willing to pay for the future growth of the company. However, a number of IPOs would increase and offer as the stock market turns bullish as investors are now interested to overpay.
It is typical during IPO time to be bought at a low price, but investors become rich as the value of these stocks would skyrocket within weeks and months. As a guide to stock investors, a thorough research and a good eye of the IPOs each year, especially the foreign IPOs, would make them rich.
With a record in a year of $75 billion raised through IPOs, would be enough to let you keep watch of IPOs that would take place if you want to get rich with a good IPO investment.
There is the so-called IPO allotment process where with the help of a lottery system, the process of allocating IPO shares is finalized to the individual who has applied subscription of IPO. Owners of the shares are decided in this simple process of lottery.
In most cases, the allotment status of the lottery will come out within 1 week as the IPO allotment process takes place within a week also. Subscribing would mean being able to go into the registrars website and you will find the details to check the allotment status.