Investing in an IPO can be lucrative, but it’s not without its risks. Any investor looking to put their money into a new company needs to be prepared to read the prospectus and consider some key factors before making a decision. One factor is to assess whether the company has the capacity to keep growing. It’s also important to understand why the company is going public and what the founders are willing to give in return for your investment. Look at the risks, determine if the numbers are reasonable and do your own research.

Read more: What investors should know before buying into an IPO