3 Fintechs That Might IPO Soon
Fintech, or financial technology, is a growing field and has been one of the biggest gainers of the pandemic. Loosely, fintech companies provide technology solutions for payments and other financial transactions. The leader in the field is PayPal (NASDAQ: PYPL), which pioneered digital payments, and an upcoming disruptor is Square (NYSE: SQ), whose stock gained nearly 250% in 2020.
As these companies grow, they often get significant funding from venture capital firms, and eventually issue stock in an initial public offering (IPO). It's often profitable to buy shares in an IPO, since the price can escalate quickly, usually ending the first day of trading significantly higher than the offering price. For example, in the latest hot IPO, Airbnb (NASDAQ: ABNB), shares were originally priced at $68 but closed at $144 after the first day of trading.
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Source Fool.com
