Reena Aggarwal, director of the Georgetown Psaros Center for Financial Markets and Policy, shared her perspective on the volatility of IPOs in a recent Barron’s feature. Cautioning investors against the hype, Aggarwal noted that many IPOs spike on the first day only to pull back soon after, underscoring the importance of patience.
“It pays to wait and watch post-earnings and after the lockup period,” she said, pointing out limited public share availability and challenges for retail investors to access IPO pricing. Her advice? Be skeptical of the first-day frenzy, “If you don’t get an initial allocation and have to buy in the aftermarket, you may not do so well.”
Read the full feature on Barron’s to explore her insights into today’s IPO landscape.