Latest Articles

Dollar gains, stocks teeter as US data suggests rates to stay higher

The dollar rose and a gauge of global equities slid on Thursday after data once again highlighted persistent U.S. labor market strength, suggesting the...
HomeStocksWhat are the IPO investment strategies?

What are the IPO investment strategies?

New shares , new refers to newly listed stocks, so new shares refer to those stocks that have just been listed and can operate normally . New shares are generally an operation performed by companies to expand their scale and increase financing. In previous years, the subscription of newly listed shares was a hot topic.

Because buying new shares generally makes a steady profit without losing money. In the past few years, if you can buy newly issued shares, it is equivalent to having a sum of money in your account. This is because the first-day listing of new shares has an increase of nearly 100%. However, for new shares, in the past two years, the popularity of ” new shares ” has declined, and even the phenomenon of new shares falling below the issue price on the first day of listing . So what is the strategy for investing in new stocks? What are the IPO investment strategies?

One is to carefully study the prospectus and listing announcement. The shareholder structure, investment orientation, profit distribution, development plan, investment risks, operating conditions over the years, profit forecasts, etc. disclosed therein, as well as the measures the company intends to take, should be used as the basic basis for investment selection. In particular, we should focus on the investment direction and development plan of the raised funds, and judge whether the investment direction is reasonable, whether it has development prospects, and how much investment return. Don’t blindly believe in the so-called “concept” and “theme”, and be vigilant about advertising some new stocks when they are listed, so as to avoid the unfavorable situation of getting stuck just after buying.

Second, it is best to choose the company that raised funds to invest in the company that has paid off in that year. The investment direction of the raised funds, some are used for new projects, some are used for merging enterprises, and some are used for the acquisition of completed projects. From investment to effective, there is generally a process, some months, some years. Especially for some new projects, the investment cycle is relatively long.

The third is to gradually build positions, and wait for the trend to stabilize before buying. The stock market has always had the habit of speculating every time there is a new situation, but in recent years, this trend has declined, and the positioning of new stocks is relatively high . So investors had better take a look and don’t rush to build positions. The pace of expansion of new shares will continue, which is always a negative for the market, so don’t have much illusions about the profits of new shares.