The IPO Process

It's a big deal when a stock IPOs, and you may be interested in participating, but it's important to understand the IPO process before jumping on the bandwagon, because as you'll see, you face some unique risks and disadvantages when buying a company's first shares.

DISCLAIMER:
Richard does not have a personal holding in any of the referenced companies. This channel is for education purposes only and is not affiliated with any financial institution. Richard Coffin is not registered to provide investment advice and as such does not provide recommendations on The Plain Bagel - those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers.

[ThePlainBagel]

Happy Friday everyone! What companies are you interested in that are IPO'ing this year?

[bobsaget]

This video aged extremely well, good to warn against IPO's looking at how Lyft and Uber turned out!

[haleyw]

I remember being allowed to join my mom and the other founders at the ringing of the exchange bell for one of the companies she started. It was honestly one of the coolest things.

[RBiscuit]

Excellent channel with some of the best financial explanations I have ever seen! Keep up the good work, Richard. Question: Can you explain the tax benefits of stock-based compensation in America? Thanks.

[nachannachle]

Great video!
The same thing can be said for ICOs (Initial Coin Offerings); only that ICOs don't even have a business behind them and the risks are therefore exponential for investors. :)

[ShivamSingh-jwey]

I think you are the only one on YouTube who can make me understand what a SPAC is. Its everywhere in the news but I don't exactly understand how it's different from an IPO and why is it the rage right now!

[timscan]

This is a great video. He really explains the IPO process in an impartial way. I note his comments on the "Risks of getting caught up in the hype of an IPO". Three major IPO's of large European companies spring to my mind!! All three were grossly over hyped and later turned out to be complete disasters for the stockholders. So this can certainly happen - Be aware of the risks of an IPO !

[frankligas]

Thanks for the video. New Video Suggestion: What are the advantages for a large growing company to not go through the IPO process? For example: SpaceX. Lots of people would love to have a piece of that company, but the owners show no sign that they want any outside money.
Again, thanks for the video.

[MemeclipYT]

“Uber the largest company”

Roblox: let me beat that soon...

[jan-jans]

plain bagel is simply the best stock youtuber. the dept of his topics is eye opening.

[niceshot]

Uber is gonna be way overpriced. They will probably be around $150 a share. Then they are gonna face some big lawsuit over a driver crashing or something like that and get a lot of bad press, then they will drop to like $80 a share.

[beaviswealth]

Awesome explanation Rich! I’d say as a rule of thumb to avoid IPOs... as tempting as they are... 😂

[montecilloivorymaed.]

Amazing!! I understand how IPO works. Thank you very much 😊

[katieforbes]

A specific video on the underperformance of IPOs would be great!

[yannickbruhlmann]

Thanks for the nicely animated video! It would probably be helpful to make a distinction between short-term performance - i.e. underpricing and related motives - and also analyze the mid-to long-term perspective

[aryaa]

So grateful for discovering your channel! I listen to your videos while oiling myself after nightly showers

[WallaceRoseVincent]

You should make a historical comment on how the IPO has changed. The IPO has changed and companies that issue IPOs aren't really market winners. They are companies who have been best backed by venture capitalist. The VC gets the best parts of the company and most of the value creation or growth. The VC becomes rich, and we the marker participants get much less. Capital markets have drastically changed and the market is rigged against average investors. Example, Uber is worth more than Ford and GM? Yeah, I've heard the discussions about future growth and sustainable business models ... but Uber is NOT more valuable in real assets. It's an example of VCs pumping and then dumping.

[johanjonahanyi]

Personally, I have always bought IPO & sold it within the first day/week of trading. Use the 'overpriced' notion to your advantage. But it is just me though🙄😁

[jonghyunkim]

thank you for your posts. it's not easy to get this helpful information about finance here in my country. keep up the great work !

[devononair]

I tend to include IPOs and other riskier investments as a very small part of my portfolio (eg no more than 1% of my portfolio in any one company). Very much taking a punt with a small amount of money I can afford to lose and that won't have a large drag on my overall portfolio. IN fact, I have invested more in Bitcoin than in IPOs, which tells you all I need to know! Hahaha