Category Archives: Technology

Dropbox will “price” its Initial Public Offering – IPO for short – on Thursday and begin trading Friday if all goes according to plan. Reports are that the offering is “oversubscribed” – a Wall Street-speak term meaning that they’re hard to get – and that there’s a lot of “demand” for shares.

So why is it you shouldn’t touch ’em with a ten-foot pole?

Because Dropbox is going to be another company in a long line of “oversubscribed,” in “demand” public offerings that isn’t worth the paper its stock certificates are printed on.

Yet.

Newly minted tech companies are a dime a dozen. As such, they have no place in an investor’s portfolio until after they’ve proven themselves with a quarter or two of numbers as a public company.