Some companies entice investors to invest before an initial public offering (IPO). The companies dangle the carrot of high returns by investing in a start-up at the ground level.
There are qualifications required for investing in pre-IPOs. And investing in a pre-IPO can be risky. Analyzing an investment opportunity for a pre-IPO is imperative. That’s because not all pre-IPO offerings are legal. But how do you invest, and how can you tell the legitimate ones from the frauds?
