How Do You Invest In Ipos?
It’s the buzz phrase of the new century – “IPO,” the initial public offering of a private company’s first public stock sale. Because of the publicized success of a few, many investors see IPO investments as a way to get ahead in the market. Step 1 Find the S-1 registration statement on file with the Securities and Exchange Commission. Generally, you will be able to find the statement at Free Edgar (see freeedgar.com). Step 2 Read the section about underwriters, and note which brokerage firms are participating in the IPO. Step 3 Call the brokerage firms and tell them that you will consider setting up an account with one of them if that firm will let you buy stock in the IPO. Step 4 Be prepared for rejection. Most brokers let only their top clients buy into an IPO. Step 5 Find out whether online discount brokers are playing a distributor role in the IPO. If so, they may be willing to let you buy shares if you will establish an account. Step 6 Open the account. Step 7 Tell the broker how
