Make money trading commodity – How To Evaluate New Securities Now, the inevitable big question: How do you decide to buy or not to buy a new issue?

Actually, the decision is not as tough as it appears. The offering circular or prospectus should give you a rough idea as to the quality of an issue or what type of underwriting the new company is obtaining. Remember, underwriting firms are the backbone of companies when they go public. To a large extent, the type of underwriting obtained determines their strength. Basically, there are three types of underwriting. First, the “Best Efforts” type, which is, according to a Globus, Inc.

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