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Finance allah shmoop What is ah hot issue All right

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Well it's one that has demanded more than it is

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supplied One that is loved more than it is hated

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One that is hot more thin it's gold Well the

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most common hot issue in the press You read about

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all the time Yeah It's an aipo that everybody wants

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Why Well it's basically free money to the investors Price

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talk has been ten to twelve dollars a share And

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well then it looks like it's moved twelve to fifteen

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and out price doc's fifteen to eighteen a share And

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traders are mumbling that the first actual traded print will

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be something like forty dollars a share So anyone who

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buys at that eighteen dollars price or really any price

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upto thirty thirty two thirty five something like that Well

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they'll make a massive return for one day's work just

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flipping their stock Tio you no longer term holders I

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think about the real estate show where they flip houses

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you know Well they have to do a whole lot

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of work to flip a house on stocks are a

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lot easier Well why do hot issues even happen Well

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often banks purposely underprice i pose to quote pay the

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street unquote for taking risk and buying that aipo handsomely

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like they price it low Lots of people are going

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to buy it have a low cost basis and remember

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it fondly Well cos generally play along instead of selling

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say thirty forty fifty percent of themselves to the public

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in there i po well they only sell ten percent

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and later on they'll sell more when the stock is

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popped and traded and settled and has a buying public

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and all the other good things that go with it

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so and only a tiny amount of shares out there

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trading even modest demand can drive prices to the sky

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and this phenomenon happens Ah lot ebay snap facebook A

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whole bunch of others essentially created hot issues by offering

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very tiny fractions of ownership of themselves to the public

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in there i po so that the enormous buyer interest

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almost guarantees more demand than supply of the security being

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sold and hot issues as you guess our great well 00:02:03.51 --> [endTime] until they're not

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