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What Are Pre-IPO Stocks, and Are They Worth It?

Before a private company goes public in an initial public offering (IPO), they might set aside a few shares to be purchased in what’s known as a pre-IPO placement. You can make a lot of money from pre-IPO stocks, but the risks are also significant, and either way, it’s not easy to get your hands on these early-bird share offerings. Here’s how pre-IPOs work, and how to know if they are right for you.


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