The term “IPO” – or initial public offering – is well known to the wealthiest of investors, and for good reason. Investing in this asset class has traditionally been limited to financial institutions and wealthy private investors. But in recent years, it’s become possible for regular folks to get in on the action, too. There’s a lot of fanfare around IPOs, especially when they involve buzz-worthy private companies going public. If you can get in early, the potential for profits is significant, but the downside risks are as well. It’s important to know about both before taking the plunge. Investing in IPOs is not only more complicated than investing in established companies, but it often requires a longer time horizon as well. That’s why it’s essential that you learn all you can about how to invest in startups and pre-IPO private companies before you get started. Table of Contents Why Invest in Startups & Pre-IPO Private Companies? 1. Profit Potential 2. A Quick Kill 3.
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