A few things worth doing before you commit:
- Read the prospectus:
- Every IPO comes with an S-1 filing covering financials, risks, and growth plans. It's your best source of facts.
- Know your time horizon:
- Are you in it for a potential first-day move, or a long-term hold?
- Be honest about your risk:
- Some IPOs drop sharply on day one. Only invest what you're comfortable seeing move against you.
- Have a view:
- Whether you believe in the company long-term or think it's overhyped, do the research so you know where you stand.