Thread: is it good to buy stock at IPO or to buy from market

is it good to buy stock at IPO or to buy stocks directly from market when planning for the long term investment. pls suggest Ramana

It is much better to buy from the market since it is possible for one to analyze the past performance and the fundamentals of the company. In contrast, in a IPO it is very difficult to guess what the future holds not to mention the troubles one has to go through to get allotment.

Originally Posted by ngrama

is it good to buy stock at IPO or to buy stocks directly from market when planning for the long term investment. pls suggest Ramana

Thanks for ur response

market is always better. we saw what happened to manaksia in a couple of weeks.

It all depends on what IPO is it....for example...take the case of POWER GRID and BRIGADE..
Power Grid was IPO was allocated @ Rs.52...and got listed around Rs.80....and it never went below that.
Whereas Brigade got allocated @ Rs.390.....and now its around rs.270...(Very weak fundamentals)

Rightly said by Rhiyan, it is always better to do ground work before going for an IPO or buying directly from market, for safe investments one can always look for Mutual Funds.

how can we say it is better 2 invest through mutual fund?
all mutual fund (NAV) in india r growing below that of sensex 4 the last one year.
mutual fund investments are subject 2 market risk so it alo have some risk..........

Originally Posted by ngrama

is it good to buy stock at IPO or to buy stocks directly from market when planning for the long term investment. pls suggest Ramana

Lot of my IPO shares are given fantastic results (more than 1000% of returns) and some companies vanished for ever (lost all ithe nvestments...).

....so decide what is good, bad & the ugly......