Post by @fatimatalksfinance

IPOs are overhyped. As someone with substantial knowledge about the stock market I won’t ever buy an IPO. Imagine I buy one belt of okrika to resell. I’ll meet like 5 people and tell them. Hey I have a belt of okrika t-shirts I’ll sell it to you at 200 each and then you can in turn sell it to your customers at double the price, so when people buy from you, you make a 100% profit. Now analogize this to an IPO the big people with money, the institutional investors buy in private placement before the general public can get access, at an undisclosed amount, now once the stock lists and the public can now buy those people who bought in private placement will now sell it to them at a profit. So in a way you aren’t an investor, you’re a customer. That’s why IPOs generally drops after listing. #financialfreedom #financialliteracy #finance101 #finance #fyp