I am interested in purchasing IPO's before they hit the market. I also understand that you must have an account with the underwritten but what other requirements such as, account miniumum, are there? Please be specific and not just "a lot of money" for an answer.
2007-10-27 10:22:30 · 3 answers · asked by tmac5445 1 in Business & Finance ➔ Investing
they must have a net worth of at least one million US dollars or have made at least $200,000 each year for the last two years ($300,000 with his or her spouse if married) and have the expectation to make the same amount this year.
2007-10-27 11:42:59 · answer #1 · answered by Anonymous · 0⤊ 1⤋
The only requirement would be whatever the brokerage requires for any account opening. If the demand for the offering is low you should have no trouble buying shares. On the other hand most IPO nare oversubscribed. At that point the members of the syndicate usually allocate whatever shares they have to their best customers (wouldn't you?). Some brokers will actually allocate shares in 100 share increments randomly until they run out, but that's not the norm.
2007-10-27 11:13:56 · answer #2 · answered by SDD 7 · 0⤊ 0⤋
In the US, the investment banks that are part of the syndicate control the allocation of IPO stocks. They usually allocate the shares of the better IPO stocks to their best customers.
Read the following link by renouned IPO researcher Ivo Welch for more information about small investors and the IPO market.
2007-10-27 14:47:04 · answer #3 · answered by Ranto 7 · 0⤊ 0⤋