What Is An IPO? Should I Invest In Airbnb? Should I Invest in DoorDash?
Answering all these questions starts with knowing exactly what and ipo is and why companies use them to begin with.
What Is An IPO:
IPO stands for Initial Public Offering, during an IPO a company offers securities that public investors and traders can buy to own a small piece of the company in hopes that the company continues to grow.
The decision for a company to go IPO is a strategic one. The goal of the ipo is to raise as much working capital as possible for the growing business.
In the past companies would perform an IPO with malicious intent.
Because of this the SEC created rules and regulations to stop this and make it more fair for the small investors to invest safely.
Should I Invest in Airbnb / Should I Invest in DoorDash:
The answer to these to questions is the same
IT DEPENDS ON YOUR TOLLERENCE AND STRATEGY
As an example if you were a day trader that is always on the hunt for market fluctuations then an IPO could be a perfect place to rake in some quick profits.
I'm more weary for the buy and hold investor because they have little data to go off of in an IPO other than the Prospectus that is created, at the end of the day this is still a piece of marketing that is designed to give you factual information but also designed to make you want to buy!
If you're a long term investor who believes a company is revolutionary enough to do well then the answer is pretty simple! If you believe the company will do well then you also believe the stock will do well past its IPO!
What I Use for Investing:
https://ndcdyn.interactivebrokers.com/en/home.php
https://act.webull.com/pm/AfSdHcj7oapv/71l/inviteUs/
https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php
https://www.franklintempleton.com/financial-professionals/tools-and-resources/tools/hypotheticals
What I Use for Budgeting:
https://www.personalcapital.com/
https://www.truebill.com/
http://refer.amex.us/WESLECF6jM?xl=cp15
If you want help setting up a portfolio service, a budget, or just want recommendations on what to do in a certain situation; feel free to comment or message me using one of the links bellow!
@InvestwithWesley (FB)
@InvestwithWesley (IG)