Missed IPO rush or did not get share allotment? No regrets; know why retail investors should avoid IPOs
Unlike the listed stocks, IPOs present a high information asymmetry between the seller and buyers. For years, IPOs have been pitched to retail investors as being advantageous to them. However, the reality is that IPOs sharply favour the sellers, rather than public participants. The regulators may try to level the playing field, but retail buyers still operate at an inherent disadvantage.
Source: indiatimes.com