What Is an IPO? Most New Listings Lose Money in Year 1. Here's How I Filter the Winners.

Key Points IPOs are a way for corporations to raise money by selling newly created shares of the company to any investor who wants to buy them at a predetermined price. Despite the bullish buzz often resulting from an IPO, most of the highest-profile ones don't perform all that well out of the gate. A little common sense can help you determine which of these opportunities are worth the risk, and which ones aren't. These 10 stocks could mint the next wave of millionaires › The enthusiastic trading activity surrounding Space Exploration Technologies ' (NASDAQ: SPCX) recent IPO certainly wasn't the first time I had witnessed the phenomenon.