Imaginary Profits only - IPO

Many investors get excited about buying IPO stocks with the basic premise that it's a great bargain, but most often than not it's a terrible time to buy a stock. There are various reason  why average investors should be cautious about buying in the initial offering due to various reasons some of which are the timing of the IPO, the size, market dynamics and the overall investment climate. Ideally any company becoming public would want to do so during a bull maket, or during normal times when there is a reasonable investor demand for IPO stocks and these investors could be both individual or institutional. Until a company becomes public, there is not much information available about the company especially the not so good things about it. Once it's public there is more information available about the company and its operations and also it has to face the acid test of being public - SEC regulations, disclosures etc. and the market wrath in general. That is the reason why most companies after becoming public see their stocks get a beating in a short time, ofcourse exceptions always exist in the form of Microsofts, Googles, Chipotles etc and as good as they are they are rare as well. But most often investors get sucked into these IPOs and if you think you can be successful betting on exceptional situations, you wouldn't be reading this in the first place. The basic fact is that when something is being sold, other factors being normal the timing of the selling occurs in the best possible times and there is no one else besides the seller who knows how good  the stuff really is, so buyers beware.