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The booming IPO market isn't paying off for retail investors

A trader works during the IPO for Chinese ride-hailing company Didi Global Inc on the New York Stock Exchange (NYSE) floor in New York City, U.S., June 30, 2021.
Brendan McDermid | Reuters

It's been a banner year for new companies entering the public markets in the U.S., but it has been tough for retail investors to strike it big on the new names.

There were an estimated 113 IPOs during the second quarter, compared with 62 during the same period in 2019 and the highest number since 2000, according to a report from Renaissance Capital. Those deals raised nearly $40 billion.

However, it appears that this Wall Street windfall isn't paying off for smaller investors.

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