How To Buy An IPO?
What Exactly Is An IPO?
What Kinds of IPOs Are There?
IPOs: Should You Invest?
Which IPO is the best for investing?
IPOs: How Do They Work?
How To Buy an IPO?
How Do I Participate in an IPO?
Why Do an IPO?
Methods for Buying IPOs
As many of the shares allotted in an IPO are sold on the first day, Gagliardi claims that most buyers are speculating when they purchase them rather than investing. Wait a few weeks or months until the hysteria has subsided and the price has decreased if you genuinely like the stock and intend to hold it as a long-term investment before making a purchase.
It's more complicated than placing an order for a specified number of shares to purchase stock in an IPO. You'll need to work with a brokerage that processes IPO orders; not every brokerage does this.
According to Gregory Sichenzia, founding partner of Sichenzia Ross Ference, a securities law firm with offices in New York City, "you'd typically have to buy IPO stock through your stock broker, and on rare occasions, directly from the underwriter—i.e., knowing someone at the company or investment bank."
IPOs may be available through brokers including TD Ameritrade, Fidelity, Charles Schwab, and E*TRADE. However, many companies will also have eligibility conditions that you must meet, such as a minimum account balance or a minimum quantity of trades made in a given period.
The most significant issue is that, even if your broker grants access and you qualify, you might not be able to buy the shares at the original offering price. Ordinary retail investors typically can't purchase shares of an IPO stock as soon as it begins trading, and by the time you can, the price may have skyrocketed above the listed price. As a result, you can end up passing up significant early market gains by buying a stock that opened at $25 for $50 per share.
Platforms like Robinhood and SoFi now allow retail investors to access specific IPO firm shares at the first offering price to counteract this. Even so, you should conduct research before making an IPO investment in a firm.
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