Should retail investors pick IPO shares in pre-market? Key highlights
- Pre-IPO markets trade are the trades in shares of start-up or matured public companies before they get themselves listed on the stock exchange.
An initial public offering (IPO) is the route to getting listed on the stock market for companies. IPO is part of the primary market and comprises fresh issues of equity shares and offer for sale (OFS) by a company. In the majority of cases, the IPOs are fully or oversubscribed due to high demand. When demand for an IPO is high, chances are that some investors' applications may not go through and they would end up not receiving any shares. However, there are many other opportunities to buy IPO shares and one such would be pre-market.
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