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Being an international brokerage with a far reach, ALPHA Group are able to offer each of our clients access to more than just the basic investment strategies. Every now and then we have the opportunity to give our clients access to Initial Public Offerings (IPO's) which can be a lucrative way to enhance your portfolio. Before we do allow our clients to get involved into an IPO we do a full background check on the company and look into detail the potential and risks the investment may have. Once we have completed our due diligence on the company who is going public, we will then deem it fit for our clients portfolios. IPO's have been a very successful short term investment addition to our clients portfolios for years, and when you become a client of ALPHA Group your broker may from time to time offer you the opportunity to get involved in these short term holdings.
An Initial Public Offering (IPO) is the initial first sale of stocks by a company to the public. This occurs when the company is listing on an exchange for the first time. A company can raise money by issuing either debt or equity in share form. If the company has not before issued equity to the public it is known as an IPO, however if they have previously done so, it can be known as a secondary offering. There are a large number of reasons why a company may decide to become public, but one of the main reasons companies decide to make the move is that after the IPO they will have access to additional capital to use in their operation.