All of these stocks shot up by at least 25% in their initial trade. Zoom topped the list with an 81% gain. The ride-hailing unicorn Lyft has proved to be a notable exception, with shares eeking out a small gain on the first day of trading beforeDespite the volatility, the IPO market remains red-hot with more companies to follow, including the mega-unicorn Uber which may seek aDespite this activity, many small investors will struggle to get a piece of the pre-IPO action.
IPOs with strong demand are over-subscribed and investors usually only receive a part of their maximum indication, sometimes as low as 10-20%, with the brokerage firm deciding the exact amount each investor receives. "Historically if my broker called me up and tried to sell me on an IPO, I would say, 'This is not a good idea,' and take a pass," Timothy Loughran, a finance professor at the University of Notre Dame."The only time they were going to go down to someone like me is if the IPO is having trouble and they're having trouble placing the shares."