IPOs - An Investment Opportunity
There is often a lot of excitement with an IPO. In July, 2011, Dunkin' Donuts (NASDAQ: DNKN) had an IPO with an initial price of $19. By the end of the first day, it closed at $27.85, a gain of $8.85 per share, or 47%! Someone investing in 1,000 shares would have a profit of $8,850 in just one day!
Some IPOs go one to a long history of success. In March, 1986, Microsoft (NASDAQ: MSFT) had an IPO with an initial price of $21. By the end of the first day, it closed at $27.75, and while not as much of a single-day gain as Dunkin' Donuts, over time each share is worth many times that amount.
During the event, an IPO may be announced. If this happens, you or a member of your team should get a prospectus (a document containing information about the company to prospective investors) to review from the information desk.