Where do IPOs fall in the business cycle?

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In the midst of the late 1990s dot-com bubble, numerous venture capital driven companies in the United States began hoping to gain from the bull market and readily offered IPOs. As soon as a company went public with their IPO offering, typically stocks would rise quickly as investors were intrigued to get in at the onset of the next budding Microsoft or Netscape.

Initial founders often discovered themselves to be millionaires before the next day, and because of liberal stock options, employees could also see increases in their income. A majority of IPOs are uncovered on the NASDAQ stock exchange.

Next Page: Under-pricing and Overpricing of IPOs

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