Can I purchase shares of an initial public offering offered through the OpenIPO process on margin?
Regulations governing IPOs state that new issues are not marginable for at least 30 days following pricing. Therefore, IPO shares must be paid for using cash or cash available to borrow. Once pricing and allocation has been completed, you will be able to determine how much cash or cash available is needed to settle the purchase of the new offering. Settlement on a new issue varies by the issuer, but is typically trade date + 3 business days. Fidelity, as part of our eligibility rules, does require $2,000 in any account which a bid is entered.
