Although many IPOs dramatically increase in price
on the first day of trading, what if you can’t get shares in the IPO? Should
you buy the stock anyway? While there is often a “pop” in price on the first
day of trading, the long run performance of IPOs is less stellar. With the
Facebook IPO looming, we can examine the performance of recent tech IPOs. For
example, Groupon is down about 18 percent since its November 4, 2011 IPO and
professional network website LinkedIn, which more than doubled on its first day
of trading on May 19, 2011, is down more 23 percent since. http://finance.yahoo.com/news/look-ipo-stocks-fared-223316207.html
