Do you need to be rich to invest in start up companies fresh on the stock market?
(How does one do it successfully?)
Answer:
You don’t need to be rich since most companies that go public start with a fairly low stock price. Buy it after the IPO (initial public offering.)
While it doesn’t take a lot of money it IS very risky, a lot of stock drops sharply in value soon after the IPO.
It’s a good time to start watching a stock to see how it behaves and figure out some patterns, but I wouldn’t buy it until at least 6 months after.
Posted: August 9th, 2010 under US Stock Market.
Tags: Stock market