This week: Do you trust Internet IPOs?

A few months back, a microbrewery called Spring Street Brewing Company (makers of Wit Beer) began selling its stock over the Internet in a do-it-yourself IPO (initial public offering). The SEC shut trade down for a while, but have since okayed the sale of stock over the Internet. Spring Street owner Andrew Klein has started the Wit Capital Corporation, which is one of several companies that will soon be trading stocks over the 'Net. Klein and his ilk feel that the Internet is the perfect medium for these new offerings, because they bring no-fee value and accessability to small investors who are often shut out of more conventional deals. But analysts and Wall Street traders warn that many of these companies should not be going public in the first place. What do you think? Are established brokers just protecting their own turf? Or does investing in an Internet IPO mean taking on an inordinately high level of risk?

See what Tripod members had to say about corporate welfare in the last survey. For other past survey results, check our survey archive.

A new Work & Money survey is published each Wednesday.

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wmills: Internet IPOs will soon be the best way to go, as online payment gets more secure and people look for a better variety of ways to invest their money.

oreoboy: I believe this will be dangerous for many inexperienced investors who may be persuaded by hype into investing in companies not suitable for their investment style and/or risk tolerance. If someone has a good broker (hard to come by), they can get the proper guidance not offered by internet IPOs.