How to invest in IPOs eToro offers a safe, easy, and simple way to invest in the world’s top companies by purchasing shares in their Initial Public Offerings (IPOs). An IPO is a process through which a private company opens its shares to the public for the first time, allowing existing investors to realise gains and new investors to join.
To buy eToro stock, traders can use the platform’s IPO calendar, which lists all upcoming IPOs. You can also filter by industry and expected IPO date to streamline your search for opportunities. When you find a company that interests you, express your interest by requesting to buy a set number of shares. If you are oversubscribed, the company will allocate you a pro-rata portion of the IPO share offering.
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How to invest in IPOs
Investing in an IPO is a great opportunity to gain exposure to a young and growing company. Stocks represent a part ownership in a company, which means that as the company grows, so does the value of your investment.
However, IPOs can be very volatile in their early days, and are best suited for long-term investors with high risk tolerances and long time horizons. You can also use stop-loss orders to limit potential losses and enhance your returns.