An IPO is riskier in that it's very likely a newer company, probably more growth-oriented. And that's fine if its strategy continues to work.
Also, it depends on how long you hold the IPO. IPOs usually are priced so that there's an initial bump up in price. Not too much; that would mean the issuing company "left money on the table." But enough to reward initial purchasers. However, after a week, or a few weeks, the price stabilizes. It may drift a bit lower or remain about where it is.
Companies that have been around for a while have a more establish track record and a more complete history, so--at least in theory--it should be easier to determine what it's actually worth.
Hope that helps.
Newer companies are riskier, but that's where you can see bigger profits..
what is better? better investments? better companies?
