There's something especially appealing about being first to the table. That's a big part of why initial public offerings (IPOs) attract so much attention. Instead of waiting until a company has spent years or even decades on the market, an IPO gives you the chance to buy a stock when it first begins trading in public markets.

You may also get to reap the benefits of the famous first-day "pop" in price. But buying early doesn't necessarily mean you're getting a good price, or even a good investment.

Newly public companies often arrive with lots of hype and valuations that can be difficult to justify. And while some IPOs go on to become major winners, others stumble and take years to recover.

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