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What are hot equity periods?

Hot equity periods

These are periods of time in which a lot of companies perform initial public offerings. It's been observed that IPOs often come in clusters, with organisations such as Nasdaq keeping calendars to show investors all the latest offerings.

Where have you heard about hot equity periods?

If you follow the financial markets, you may have noticed times of year when more firms offer their equity on the market. Some observers note that IPO volume is lower in the first and third quarters of the financial year.

What you need to know about hot equity periods.

The number of IPOs always varies across a financial year. IPOs are most often associated with newer and smaller companies, but they are also done by bigger companies which are looking to become publicly traded. The reason often given for the fact that more IPOs take place in the second and final quarters of the year is that fewer firms are normally looking to take such action around the Christmas and summer holidays.

Find out more about hot equity periods.

The debt equivalent is known as a hot debt period. Check out our guide to learn more.

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