Initial Public Offerings (IPOs) can offer exciting opportunities to invest early in companies transitioning to public markets. However, evaluating an IPO requires a disciplined and strategic approach. With companies often presenting a best-case scenario in their prospectus, investors need to know what to look for — and what to question. This guide explores the key factors to evaluate before investing in any IPO.
Understand the Company’s Business Model Before investing, ask: What does the company do?