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Why "Marquee" IPOs Are a Terrible Idea for Regular Investors

The $756 million Dropbox Inc. initial public offering was a huge success, soaring 35% higher than its $28.48 debut price on the day. It was the biggest, richest tech IPO since Snap Inc. shares hit the market last year, and it has everyone "talking IPO" again. What is it about a Silicon Valley IPO that makes investors go all starry-eyed? I mean, I like unreasonably large piles of money as much as the next guy... but overhyped IPOs of the moment just aren't the way to make a pile yourself. Big-game IPO investing, where it's even possible, is almost always a loser for anyone who isn't an underwriter, institution, or corporate insider. In fact, it's much worse than that: If you do somehow manage to get allotted shares of the Next! Big! Deal! ...'re probably about to be taken for a ride. Tags: IPOs To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and visitors become smarter, more confident investors. Disclaimer: © 2018 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post Why "Marquee" IPOs Are a Terrible Idea for Regular Investors appeared first on Money Morning - We Make Investing Profitable .
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