Where Will Chime Be in 3 Years?
Every investor would love the opportunity to get in early on initial public offerings (IPOs). The earlier you buy, the better the chance to gain, at least in theory.
That's not what always happens, especially today, when IPOs are very public indeed and often come with a lot of hype. Part of the problem is that most of an IPO's shares go to institutional investors, especially the investment banks that underwrite the offering.
Retail investors get a chance to buy only after the stock is already on the open market, and with the speed at which stocks trade in the markets in the digital age, prices can run up quickly, making it unaffordable for retail investors to have any real chance at a low price.
Source Fool.com
