IPO Secrets Revealed | What IS an Initial Public Offering?

IPO stands for initial public offering. As I've talked about, stocks are something just to basically, trade very quickly to try to grow your account. An IPO is very different. Subscribe here to get INSTANT alerts when I post a new video outlining my penny stock trading techniques: goo.gl/poGZTm
0:20 An IPO is very different, where, a company is becoming a stock for the first time. It's becoming a public stock. Initial public offering. So this is where a private company has just been existing in the private world, where you don't know the exact revenues, you don't know the profits, it's been a very, kinda, private creature. Now, it is coming into the public territory where they're gonna have to publicly report their earnings their profits talk about all of their future plans.
2:00 an IPO is just one specific date when a company first becomes public. The company is a living, breathing organism so it's gonna change over time. Sometimes, it's gonna get better. Sometimes, it's gonna get worse. But the IPO is one moment in time when the company decides, "Hey, we're not gonna be private anymore. We're gonna be public." Why would you want to be public? Why would you want all of these public shareholders? Why would you want all this responsibility? Because companies need cash. An IPO is all about raising money.
4:00 And so they raise 40 million instead of 60 million. That would be a failed roadshow. They still get 40 million, but they wanted to raise 60 million. So if the IPO opens down, then you know that the roadshow wasn't very well perceived. So it's kind of important to see exactly what the stock is priced at for the IPO, and then also see how it's trading in the aftermarket. Institutional investors, bankers, mutual funds, hedge funds they're theoretically sophisticated investors. Even though statistics say otherwise like they're not that good.
6:00 For me the IPO is just the first start. Then I have to see how the company trades, I have to see how the chart pattern plays out because then, I have my favorite chart patterns, that's how I avoid gambling. That's frankly why I've become a multimillionaire. That's why my top student have become multimillionaires. Sometimes you have to avoid the action. You have to lose the battle to win the war. Even though everybody likes the action, it's not exactly predictable.

[@ARTofWAAR]

Just finished your 14 video Trader checklist collection. I appreciate the transparency in you ur approach. I'm just playing catch up so I'm devouring any and all of your videos taking notes like a mad man. I appreciate the work you put in. See you at the top.

[@jkn928]

Thanks Tim for sharing your knowledge! It's invaluable and appreciated!

[@matthewwatson1927]

Valuable information Tim thanks 👊

[@katherinecrawford5058]

Good information! Thanks Tim

[@thechefon2wheelsjosephpadu414]

I'm A newbie and i truly enjoy every video you post, thank you

[@alfredoandrade7279]

So thats how IPO works. Thank you Tim for your guidance.

[@TimothySykesTrader]

Glad it was helpful!

[@hiczertrader8928]

Thanks for uploading the video during the mid day .. best moment to watch video and study when market is slow

[@lightsdiamondslifestyle4741]

Wow that's a great info Thanks a lot Tim !

[@TimothySykesTrader]

you're welcome! 👍

[@hobbies222]

Great video I totally agree about IPO at the start very unpredictable

[@joelarsen2915]

thanks for the info.

[@joshuadrayton9970]

Good tip tim💪🏼😎

[@ademozirmak]

Shalom Tim all the best for tomorrow’s Live 8Hr Trading webinar :) looks like you didn’t get that big crash on Monday that you would have liked, nonetheless should give you some hot stocks to watch and potentially trade! 4:24am in Sydney always love catching your vids fresh as you do them. Interesting insights on your take for #IPO’s

[@mridulpathak6943]

Thanks a lot for the videos Tim. Just Love them and learning a lot. But I was wondering how much initial money is required to get onboard the millionaire challenge? Excitedly looking forward to it. Thanks

[@JeanPau1]

Thank you Tim!

[@TimothySykesTrader]

👍👍

[@kgscott69slots95]

This good to know Tim Good News Tim !

[@steverychetsky2310]

Good Lesson. HOW do you find these offerings? Thanks, Tim

[@taopenny2095]

thx for education. Yu are great. :--)

[@myagentdeontia]

Thumbs up...another great video ...way better to learn then watch boring tv....

[@irislali1234]

Thank you Tim for being my mentor. You are the best

[@Justkickinit954]

i like that u do this god damn i cant wait to really be in it!!!!!!!!

[@MrDaddy-nv9kp]

Cool

[@darkstardust80]

Thanks for the info you are super to explain things / Daniel_swed

[@dylanbritz1333]

What pattern do you think works better, a multi day/week/month breakout/breakdown or a stock that surged up 3 or 4 days then dumps, dip buying that? Thanks 😀

[@ChickenChipotleSandwich]

i find all tims videos are in pennystocking 101

[@chiefsmurph]

What the heck I thought you were doing a all day live trading thing

[@TimothySykesTrader]

Pre-recorded this one.

[@chiefsmurph]

if this video was pre-recorded does that mean the all day live trading happened elsewhere not on youtube?

[@otienodaniel9165]

I watch more of your videos...

[@otienodaniel9165]

Can a guy Kenya trade penny stocks?

[@PostByJuice]

Sounds like ICO in cryptos.

[@cjack202003]

If a company is already doing good as a private company, why go public? Nlight was already making 100 of millions of dollars as a private company. Why they need to go public? I see articles of CEOs getting fired/voted out by shareholders. This is one of the reasons why I would never go public as a company, if I'm already doing good as a private company. No one is going to fire me from my own company.