Initial public offerings, or IPOs, can generate a lot of excitement, especially when there hasn't been a public offering in a long time. And last week's debut of Arm Holdings (NASDAQ: ARM) had that in spades. After launching at $51 per share on Thursday, amounting to around a $53 billion market cap, Arm rocketed on its first day of trading. And while Friday saw a sell-off -- true across the entire tech sector -- the stock still finished the week 19% higher.

However, buying an IPO can be pretty risky. After all, when a company goes public, existing shareholders are cashing out, meaning both the company and its investment bankers have incentives to market the company to public shareholders -- that means you! -- at a high price.

Looking through Arm's registration document shows that there weren't one, but numerous red flags that stood out. Here are five factors that should keep new investors far, far away from the stock.

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Source Fool.com