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Day trade in IPOs: Is it profitable or not?
University West, School of Business, Economics and IT.
University West, School of Business, Economics and IT.
2025 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This Study examines the profitability of investments regarding Initial Public Offerings (IPOs), by analyzing a dataset that contains 696 IPOs from 2010 to 2024 across six different nations (US, Japan, Germany, France, UK and Sweden). The dataset contains two key variables, raw first day return in percent and adjusted (benchmarked) first day returns. The data will be analyzed by different methods, the methodology employs descriptive statistics, chi square tests and a few more. This study will try to see patterns between IPO performance based on nation and industry.

The empirical finding in this study indicates that there was not a statistically significant profit with the first day-trading method. Neither one of the key variables had positive median or mean, both approximated zero. The tests were not significant, that implies that there was not a relationship between the first day performance and country or industry.

The main conclusion is that, based on the data, the tests and the analysis, it is not a profitable strategy to day trade in IPOs.

Place, publisher, year, edition, pages
2025. , p. 38
Keywords [en]
Initial Public Offerings, IPOs, profitability
National Category
Economics
Identifiers
URN: urn:nbn:se:hv:diva-23760Local ID: EXC513OAI: oai:DiVA.org:hv-23760DiVA, id: diva2:1985288
Subject / course
Nationalekonomi
Educational program
Mäklarekonomprogrammet, fastighet och finans
Supervisors
Examiners
Available from: 2025-08-12 Created: 2025-07-23 Last updated: 2025-09-30Bibliographically approved

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