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Millions of Investors Get Suckered by Hot IPOs – Here's What to Do Instead

Almost nothing generates a bigger financial media splash than a red-hot initial public offering (IPO). It's like the Oscars, Christmas, and the Fourth of July rolled into one. And (with the exception of a few cannabis IPOs) that can be a bit of a problem for regular investors, who might naturally get excited by the hype. An IPO like Lyft is like a big, fancy dinner, where huge players - like Carl Icahn, say, or Ray Dalio - and the underwriters are all sitting at the table chowing down on gourmet food. They get first dibs, and the best prices. In fact, just yesterday, The Wall Street Journal reported Carl Icahn sold his 2.7% Lyft stake to George Soros ahead of the public offering. Under that table, scrounging for scraps that might fall, are... regular investors like you and me. It's often nearly impossible to buy shares, and if you do manage to get an order filled, you'll almost certainly have paid way too much. Yep - our "competition" in the IPO game is folks trading $550 million positions like they're trading baseball cards. I'm going to show you what else is happening with these big IPOs - and I'll name a much better way for investors and traders like us to cash in... Tags: IPOs To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2019 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post Millions of Investors Get Suckered by Hot IPOs – Here's What to Do Instead appeared first on Money Morning - We Make Investing Profitable .
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