Even with well-established stocks, it can be difficult for investors to project which way their prices are going to go. For a stock issued in an
While many companies involved in an IPO have limited track records for investors to study, the market itself which their products will inhabit is a good place to start an IPO analysis. If, for example, a company is opening a new nationwide chain of pasta restaurants into a market already saturated with such establishments, there is a good chance that company will fail to make its mark. Investors may also wish to study the past initial stock issues of companies within the same industry as the one offering the IPO to see how the market reacted.
Management style and
In some cases, a company involved in an initial public offering may have been doing business for a while before the offering. Investors can use financial reports from companies such as this to see how well they stack up with their competitors. On many occasions, companies that offer IPO's see an initial surge in