Herd mentality is clearly visible during IPOs. Many investors want to know the subscription numbers thus far before lodging their application. Very often the success (in collection) of an IPO depends on the subscription amount in the initial few minutes after opening of the IPO.
IPOs fail to get subscriptions if the initial response is poor and vice versa.
This is nothing but herd mentality at play. This is an example of outsourcing investment research and thinking.
Be careful. Invest in an IPO only based on the merit of the issue and only if it fits into your personal investment plan.
#RidingTheRollerCoaster – 146