Nothing gets investors' pulses racing like a hot initial public offering.
Overlooked, however, especially in a roaring bull market, is how the average IPO has done over the long haul. The longer-term record is little better. Jay Ritter, a finance professor at the University of Florida in Gainesville, examined all IPOs issued from 1970 through 1993. By their very nature, most are issued by unseasoned companies. Moreover, firms typically go public at a time of maximum investor enthusiasm.