What is trending now in the market is IPO or initial public offering where the small cap investors are among the biggest beneficiaries. In the past few years, the IPO market is seen to be a challenge, but the situation is changing lately that makes people watching the market.
This famous method called IPO is when a company go public in order to raise funds and expand its business and for other uses. This is the activity where companies would go for an initial public offer wherein they offload their shares in order to raise money from the public.
The stocks of most of these IPO companies are most important for small cap investors especially these companies are in their stage of rising. So, when these private companies decide to go public, there is a lot of major decisions to be made. Whether it is a venture capitalist, angel investors, private equity firms and company, their founders would all want a return on their investments to be of the highest possible. With the objective of getting the maximum return out of their investments, most venture capitalists and angel investors would pay a lot of scrutiny even to the smallest details of the negotiation.
Note that when the stock market is down, private companies would tend to avoid offering an IPO, since conscious investors will not be willing to overpay for the business. On the other hand, when the stock market becomes bullish, several IPOs would open up since investors are now willing to overpay.
At the time of the IPO, it is normal for you to buy stocks at a low price, and more than often, you become rich after weeks and months as these stocks would skyrocket in value. As a guide to stock investors, a thorough research and a good eye of the IPOs each year, especially the foreign IPOs, would make them rich.
With a record in a year of $75 billion raised through IPOs, would be enough to let you keep watch of IPOs that would take place if you want to get rich with a good IPO investment.
There is the so-called IPO allotment process where with the help of a lottery system, the process of allocating IPO shares is finalized to the individual who has applied subscription of IPO. Owners of the shares are decided in this simple process of lottery.
In most cases, the allotment status of the lottery will come out within 1 week as the IPO allotment process takes place within a week also. As you become a subscriber, you will only need to check the allotment status from the registrars website where you can select the IPO.