How can a small investor buy into an IPO from an underwriter before the stock reaches the trading floor?

Kristina asks:

Specifically interested in Switch and Data Inc

4 Comments to "How can a small investor buy into an IPO from an underwriter before the stock reaches the trading floor?"

Kareem

unfortunately you can not
Bobbie

IPO go the big money and you will not get a chance at it. You can buy it after it goes public but it wil either be to high or it will drpo like a bomb.So just invest in a mutual fund. They get IPO.
Marleen

A lot of ppl want to get in on the ground floor with IPO share releases. Unfortunately, thats exactly why they’re so unavailable. Roughly 70% of IPO shares are pre-owned by corporate, venture, principal and other investors. An additional 10% is usually offered to the underwriter as a service fee/thank you- its the remaining 20% that market investors fight for, which in part drives the value of stocks up on early trading days.
Marylee

Listen to this very Carefully !!!!

You can invest in IPO.s but this is how it works if you are a small investor.

If the IPO is good and should go up in value on first trading day, it is sold to insiders at brokerages, and their big clients, and to insiders of the company, using fantom accounts, but there will not be enough shares to give you any.

But if the IPO, looks like it won’t do anything and is just being “HYPED” to get investors to raise money, you can get some, and you will be encouraged to buy more, so insiders (those who were allowed to buy the previously listed stuff, like above ,) can dump their “SEED” shares before they drop like a rock..

If you are a small investor, stay away from IPO.s