The Role of Retail Investors in Modern IPOs
Introduction
In the dynamic world of finance, Initial Public Offerings (IPOs) have long been a significant event, marking a company’s transition from private to public ownership. Traditionally dominated by institutional investors, the landscape of IPOs is evolving, with retail investors playing an increasingly prominent role. This blog post explores the role of retail investors in modern IPOs, examining their impact, benefits, and challenges.
The Rise of Retail Investors
Retail investors, often referred to as individual or small investors, have gained substantial influence in the financial markets over the past decade. The advent of online trading platforms, increased financial literacy, and the democratization of investment information have empowered retail investors to participate actively in IPOs.