An initial public offering index (or IPO index) can tip you off to the latest companies that are selling stock to the public for the first time. IPO indices lead you to new potential investments but before you buy IPO stocks, keep these points in mind:
1. An IPO index cannot differentiate between good or bad investments.
2. You will need to check IPO stock indices throughout the day for frequent updates.
3. Read everything you can find on the index for IPOs for the companies from which you are considering purchasing stock.
Action Steps
The best contacts and resources to help you get it done
Consult the large IPO indices first
IPO indices offer a lot of information on companies that they list. There is a basic profile which explains exactly what products and services the company has to offer. The IPO indices provide links to press releases on the company and contact information too.
I recommend: The
NYSE and
NASDAQ IPO index pages list IPO summaries that are worth checking out and they are free.
IPOhome has a subscription based service providing IPO information.
Gaskins offers a product called Desktop Pass with IPO information and they allow you to try it out for 14 days.
Find out how often IPO tracking services update their market information
IPO tracking services vary as to how frequently their listings are updated. Use real-time IPO indexes information if you can to get the most current data on IPOs. Real-time IPO tracking services are normally subscription based so be prepared to spend some money for this valuable information.
I recommend: Check out real time IPO tracking services from
IPOfn,
IQ Chart and
Self Investors.
Set up IPO tracking alerts
The smart way buy IPO stocks is to get the information first. Keep abreast of IPO news with IPO tracking alerts that deliver the news directly to your desktop.
I recommend: StreetInsider.com has a basic service that provides trading alerts that are delayed by 1-hour and offer premium services too.
Hoovers has a lot of free IPO information on its website and so does
Investors.com and
CNNMoney.com, though they all offer premium services too.
Tips & Tactics
Helpful advice for making the most of this Guide
- Before you buy IPO stocks, understand that investing in IPOs is a very risky business.
The official source of IPO Indexes is the IPO Indexes page at Business.com
Related Resources from Business.com
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