buying ipo through tdamertrade?

Question

I read many answers to these kind of questions but still not sure.
For example there is IPO that suppose to be sold around $20.
Tdameritrade say i can put day/limit order in the day before the IPO goes on market, or purchase them when they go on secondary market.

Do I just call a broker up a put a day/limit order at $20? or do I have to put it higher bid?

Tdameritrade say I can trade online when the stock goes on secondary market. is that same thing as launching date of IPO?
Thanks~!

Answer 1

A day/limit order is an order to purchase stock at a specified price on a given day. This differs from the standard 'market' order to purchase stock at whatever the current price is. A day/limit order will only be executed if someone is willing to sell at the specified price. If your offer is too low, your purchase will not happen.

Answer 2

You will never buy the the stock at the IPO price. This is given to high net worth customers at huge brokerage firms. TDAmeritrade does not deal in these deals.

What they are telling you is that you can place a limit order to buy the stock once it starts trading. Any brokerage firm can place this type of order. The price you put as a limit will be the highest price you are willing to pay for the stock. Whatever you do, never put in a market order for these new issues, because if the stock opens at $90, you will pay that price.