Trading Stocks Made Easy With Tyrone Jackson: Investing In Stocks | Investing Money

Stock market beginners often want to know how to get in on the ground level of a stock that is going to rise. They often ask about IPO’s. An IPO is an initial public offering, or a company that is going public for the first time. There’s usually speculation on the Internet and in the news about how this is a great time to get into that stock. Should you own a stock when it first goes public? Tyrone's opinion is that you should never purchase a stock when it first goes public, because a company that is just going public raises money through the sale of stocks and sometimes bonds to expand their business. At that point we don't know anything about their marketing plan and what they are going to do with the money that they raise. This means there is more risk involved with that stock. There is no track record for how much the company is spending and earning. The closest you should ever come to buying an IPO is one year after the company has gone public, because there will be one year of revenue and four quarters