IPO or Initial Public Offering is a primary share offered by a company that has been recently listed on the stock exchange. Since these companies are yet to start public trading, their stocks are available for a small price. Short-term investments in IPOs can also yield significant returns, especially is the company has proven to be valuable for many years. If the company is good the price of stocks after IPO closes begins to rise. If you do not have a lot of money and do not have the patience to invest for the long term, consider investing in IPOs. However, before investing in IPOs, do research on the finances of the company.