Beware The Ipo Market

Vermont Teddy Bear Co. in Shelburne, Vt., makes teddy bears, some of which actually say, "I love you." But when the company went to Wall Street, the message wasn't "I love you." It was "Buy our stock." Last Nov. 23, Vermont Teddy Bear went public in an initial public offering at a price of $10 a share. The stock that day quickly zoomed to $19. But for most of the small investors who wanted in on the deal, the $10 price was illusory. Most had to pay upwards of $16 during the first two weeks after the offering.

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