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We all are very well excited about new stuff coming our way. Be it gifts, new clothes, a new smartphone or a smartwatch. We all also love the feeling of getting to use something new since it is ours, and if it is the first of the kind, we love it more.<br>That is a similar excitement we see in the stock market too when IPOs are announced. People invest in IPOs(https://www.edelweiss.in/new-issues) as they feel it will be a start of something new, or it will help them build enough wealth.<br>
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Introduction We all are very well excited about new stuff coming our way. Be it gifts, new clothes, a new smartphone or a smartwatch. We all also love the feeling of getting to use something new since it is ours, and if it is the first of the kind, we love it more. That is a similar excitement we see in the stock market too when IPOs are announced. People invest in IPOs as they feel it will be a start of something new, or it will help them build enough wealth. But, are these IPOs worth investing?
Why are people excited about ipos? The Myth: A company launches the IPOs and people presume that the value of the share is much lower than the true price. People are also excited about the fact that they are the first ones to own. Plus, they will be earning big when the stock is listed on the bull market. Herd Mentality: People tend to follow herd mentality since everyone is doing it, we should do it too. So, that is one reason why people are more excited about buying IPOs. Overhype: Of course, if a privately-owned firm is new in the market, it has to spend a bit more on advertising. Only then you would you know about it and only then will you be willing to spend on these shares.
Are ipos worth investing? Putting your money in IPOs does not guarantee wealth or profits. Do not hear everything in the news, marketing and overhypes, since they are meant to lure you into the game. But, if you really want to make this investment worth it, make sure you invest in the right market. Researching the company that offers IPOs and understanding their business prospects will help you make the right choice.