Is investing in IPOs less riskier than in direct stock market?
No. IPO's can be a great way to get into stocks. Some IPOs offer poor returns.
There are few risks involved in applying for an IPO.
- Stock listing at a lower price than the issue price
- Investor doesn't get allotment because issue is heavily oversubscribed.
- Incorrect processing of refunds could cause delays in receiving the money back for shares that were not allocated.