Key Metrics to Analyze Before Investing in an IPO

Company Fundamentals and Financial Health A meticulous review of the company’s financial statements is the non-negotiable foundation of any IPO analysis. The prospectus provides several years of audited financial data, typically three years of balance sheets,...

The Impact of Lock-Up Periods on IPO Stock

The Mechanics of a Lock-Up Agreement A lock-up period is a legally binding contract between the underwriters of an initial public offering (IPO) and a company’s pre-IPO shareholders. This clause, embedded within the underwriting agreement, prohibits insiders from...