Jay Ritter
Cordell Eminent Scholar Jay Ritter

Ostin Tech Stock Plunged 88% in a Cautionary Tale for IPO Investors

What a difference a day makes. On Thursday, Ostin Technology GroupOST –21.26%, a Chinese supplier of display modules, gave back most of the 892% gain from its first day as a publicly traded company. 

The IPO market has seen quite a few low-float listings this year among the few firms that have gone public, said Cordell Eminent Scholar Jay Ritter, who studies special-purpose acquisition companies, or SPACS, and IPOs. Almost all are money-losing companies with little or no revenue, Ritter said.

Read more from Ritter in this story from Barron’s