While IPOs are having a good year, 'just don't buy the hype,' experts warn

While IPOs are having a good year, 'just don't buy the hype,' experts warn  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  VIEW IN BROWSER | SUBSCRIBE WED, SEP 09, 2020 YOUR WEALTH Editor's Note Initial public offerings have created a great deal of buzz lately. However, average investors should think twice before getting caught in the hype and buying upcoming IPO stocks, warn financial advisors. Many financial experts point out that the price in the initial offering of an IPO goes to big investors who can get in on the deal early. Therefore, the average investor can never buy at the IPO price. For the average investor, an IPO may actually prove to be just a little bit more profitable than any other stock investing. Maybe you'll make a windfall on a single trade, and maybe you won't. But let's be honest here, while a few of these IPOs rally in their debut, many just do not. Any investor who is thinking about buying an IPO stock really needs to consider how it fits into their total asset allocation and risk profiles, certified financial planner Doug Boneparth explains. "If you've done your due diligence, the company has strong fundamentals and you believe in the company for the long-term, then it can be good to get in early," he said. He does, however, warn about getting swept up in with the excitement of buying a "hot" IPO. "Just don't buy hype," Boneparth said. "You're buying a company." For more key stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. Join CNBC Events at the next @Work CFO Spotlight on Sept. 23, where finance leaders discuss striking the balance of weathering the storm while planning for the future. 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