It's no secret that the IPO market is springing to life now that we're coming out of the US recession.
Over the past few weeks, I've seen some very amazing companies file with the SEC for public debut as an IPO.
The first step is to check out the companies looking for public debut.
This can simply be done by checking up with the Securities and Exchange Commission or it can easily be done for you by a reputable trading service.
Check out their prospectus! Every company wishing for a public debut has to file a form called an S-1 with the SEC, where they basically air out everything about themselves from earnings to what they'll do with the IPO proceeds.
This document is very important to the IPO investor and needs to be treated as such.
The 3rd step to getting in on a successful IPO is to "Know thy Underwriter".
This is probably one of the most important steps in selecting a quality IPO.
Because not all underwriters are the same, an IPO could be managed in the wrong way, possibly creating a dud on its public debut.
Second to knowing the underwriter, the "Use of Proceeds" statement is very telling.
This statement is included in the S-1 document filed with the SEC and it describes exactly what the company will do with the funds, after its public debut.
Now it's time to get your orders in, especially if you've found that you have a hot IPO on your hands.
Now, trading an IPO may seem difficult, but I assure you, it's not as hard as you may think, in fact it's as easy as 1,2,3.