Understanding Lock-Up Periods: A Comprehensive Guide

What is a Lock-Up Period? A Lock-Up Period is a predetermined timeframe following an Initial Public Offering (IPO), during which major shareholders, such as company insiders, employees, and early investors, are prohibited from selling their shares. This period is typically set by the underwriters of the IPO to prevent the market from being flooded with … Read more

What is an Underwriter?

An Underwriter is a key player in the financial world, typically a member of a financial organization, that evaluates and assumes another party’s risk in mortgages, insurance, loans, or investments. The underwriter’s role involves assessing the degree of risk each applicant or entity brings before assuming that risk. This check helps to set fair borrowing … Read more

Investing in IPOs: What to Look For

Investing in Initial Public Offerings (IPOs) can be a rewarding but risky endeavor. Here are some factors to consider when deciding which IPOs are worth your investment. 1. Company Fundamentals Before investing in an IPO, it’s crucial to understand the company’s fundamentals. This includes its business model, revenue streams, profitability, and growth prospects. A company … Read more