Friday Finance: beware of these shares!
This is an extract from The Poor Man’s Guide to Financial Freedom: A Realistic, 10-Step Manual for Building Liberating Wealth on a Low to Medium Income.
Shares – Related Matters
Stock Market Float
Sometimes companies new to the stock market will have a ‘float’ – there will be an initial public offering of shares. This might be when a private company goes public in order to raise money for expansion. It might also happen when a formerly government-owned company is listed on the stock market. Readers might remember when Facebook first went public and floated on the stock market in 2012.
These tend to be risky investments as the value of the as-yet untraded shares is still uncertain. When we get to the part on how to invest in shares, I will not recommend specifically buying newly-floated shares.
Private Equity