Upcoming IPO...should I purchase equity shares?

Question

My mother is a senior associate with the comapny below. I want to know if its too good to be true. Im new at this.THE 4th largest Financial Brokerage Company in the world. CEO and Senior Vice President FEATURED ON "Success" Magazine! Also featured on MSN NBC and CNN. Company currently worth $14 Billion. Rumored to
be worth more than $25 Billion within 18 months. Company only 4 years old, and growing rapidly. They offer financial advising , real estate
marketing, and mortgage services.They're offering their employees, and even their employees families and friends a chance to purchase Equity Shares below market
price.Before they go public in 18-24 months. Like Microsoft, only
the "inside" people got a chance to purchase shares way below market
price. Basically $400 per 1000 shares. Shares currently worth $20 a share, and predicted will be worth $35-50 in 18 months. Employees can gain an extra 1000 equity shares for every new employee they refer to the company by January 31

MY MOM WANTS ME AND MY FRIEND TO BE A PART TIME LOAN OFFICER(FREE TRAINING AND MENTORING) SO I CAN PURCHASE THE EQUITY SHARES BELOW MARKET PRICE AS AN EMPLOYEE, SHE SAID TO JUST BECOME AN EMPLOYEE AND QUIT AFTER ITS SOLD. THERES NO SALES QUOTA NEEDED TO QUALIFY TO BUY SHARES. WHICH MEANS I DONT HAVE TO DO ANYTHING BUT BECOME AN EMPLOYEE AND COLLECT. SHE SAID THEY ARE DOING THIS BECAUSE THE LARGER THE COMPANY, THE BIGGER THE OFFER, OR THE MORE THE COMPANY IS WORTH. ITS CURRENTLY WORLDWIDE, WITH MILLIONS OF AGENTS, SOO......THINK ABOUT IT. SHE HAS ALREADY REFERED 25 NEW EMPLOYEES SO SHE GETS THE RIGHT TO BUY 1000 SHARES PLUS GAIN AN EXTRA 25,000 SHARES FOR HIRING MORE AGENTS.

Answer 1

Have you seen a prospectus or a red herring on this? If they are planning an IP then they must have audited financial'! Take a look at that first. You can at this point if it has Bean published about an IP by warents or options for this stock. The offing you are referring to is a private placement and has suitability requirements. If you meet the suitability standards and wish to invest then do so. Just a thought of a public offering does not make it a sound investment at all.