Lyft’s IPO contains important information for investors

How the Stock Market Looks After Lyft's Big Day...READ MORE
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How the Stock Market Looks After Lyft's Big Day
There were definitely winners and losers in the Lyft IPO. The ride hailing service completed its initial public offering last week and it was widely hailed as a success. By many measures, the offering was an unqualified success.

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Initially, the company expected shares to be priced in the low $60s. Then, management made presentations to potential investors and decided to price the shares at $72. When trading began on the first day of public trading, the price was $87.24.

That reads like a success with ever rising prices. But there are more questions that need to be considered, such as who was selling at $72 and at $87.24. We look at the IPO process in our latest article. We also look at how IPOs fared on average and find that Lyft actually had a fairly typical start to its trading history. Tech stocks often rise on their first day of trading.

As we explain in the article, the next three years could be more important to individual investors. For the most part, it is likely large investors were buying shares at $72 and making a quick profit in less than one day. For individuals who are often shut out of that market, the next stages of trading could be more important to consider.

We have more in our latest free educational article which is available right here.

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