IPOs Paid Out Big for US Investors in 2020

IPOs Paid Out Big for US Investors in 2020
Raindrops hang on a sign for Wall Street outside the New York Stock Exchange in Manhattan in New York City, N.Y., on Oct. 26, 2020. Mike Segar/Reuters
|Updated:

Wall Street investors with access to newly listed stocks at their exclusive initial public offering prices reaped huge returns in 2020, while retail investors who generally miss out on the best prices still made tidy gains.

Shares of companies that went public via IPOs or direct listings this year on average have surged 75 percent, with corporations that have yet to report a profit jumping more than twice as much as those with positive bottom lines, according to a Reuters analysis.