Sounds good in theory, but nowadays what happens is companies go public when they are fully valued, making them ripe for collapse when insiders take advantage of the liquidity to exit positions. When companies go public early, opportunities are created for retail investors to make huge money (AOL, Dell, Amazon, Walmart to name a few examples). Now it's like, you get to buy at the very top and it's for your own good. horaaaaay
If you believe that then short some of these companies. I agree the game can be a little rigged but there is still massive opportunity to invest well on the open market.
I know what you are getting at, but by the time the average Retail Investor can even get the opportunity to short the stock it is truely gambling.
"In a hot IPO, when many investors are clamoring to get shares, many of those who do get the newly issued shares will flip it—immediately sell it in the open market for instant profits. The investment bank must, by law, sell the new shares at the offering price regardless of demand. Because of the demand for the new issues, they have to be allocated, and usually it's the biggest clients of the investment bankers who get the issue—small investors almost never get to participate"
