"Pre-IPO" Investing

"Pre-IPO" investing involves buying a stake in a company before the company makes its initial public offering of securities. Many companies and stock promoters entice investors by promising an opportunity to make high returns by investing in a start-up enterprise at the ground floor level—often a new company that claims to be related to the Internet or e-commerce.

But investing at the pre-IPO stage can involve significant risk for investors. To learn more, please read our publication entitled Risky Business: "Pre-IPO" Investing.