How can I buy VISA IPO?
Barrett asks:
Is it possible to buy IPO’s before they come out? I want to eventually purchase the VISA IPO, and currently use a discount broker. Do I need a certain broker? Can the individual small investor buy the IPO?
Is it possible to buy IPO’s before they come out? I want to eventually purchase the VISA IPO, and currently use a discount broker. Do I need a certain broker? Can the individual small investor buy the IPO?
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Unless you have a friend in Visa that is able to invest prior to the IPO getting listed on the stock exchange, you’ll have to wait. Typically someone like Cramer or others would comment on whether the listed price is valued correctly, or too high, or a bargain, which might help you determine your buying strategy. I’ll be looking to acquire this one as well.
If Visa realizes its $10 billion goal, it would be raising the second most ever generated in an IPO by a U.S. company
MasterCard Inc., Visa’s next largest rival, went public 18 months ago, raising $2.4 billion in the 17th largest IPO in U.S history
As they gauge the interest in an IPO, the companies sometimes revise their fundraising goals dramatically.
For instance, software maker VMware Inc. initially estimated it would raise up to $100 million when it filed its IPO papers in April. The company wound up raising more than $1 billion.
The demand for Visa’s stock is expected to be high because the company’s revenue figures to steadily grow as consumers increasingly pay for merchandise with credit or debit cards instead of checks or cash.
Visa’s payment processing network is by far the largest in the United States. Last year, the company processed 44 billion transactions totaling $3.2 trillion, according to Friday’s SEC filing. MasterCard processed 23.4 billion transactions totaling $1.9 trillion.
Visa makes most of its money from the fees it charges card issuers and merchants for using its network. During the first nine months of this year, the company earned $771 million on $3.7 billion in revenue.
This is a yes and no question. Is it possible to buy the stock before it comes out, yes. Will the average person be able to no.
The way stocks are brought to market is really very easy to understand.
There is a selling group of brokerage firms given the job to market the stock. One firm is the primary with many firms in the selling group.
Each firm is responsible for selling X numbers of shares. The brokers of the firms call their clients and tell them about a “great” new stock…whether it is great or not. The broker informs the client of the probably selling price with in a range (ie $16 to $20). If the client agrees to buy, he will be charged the price at which the stock appears. Now the stock comes out. It was priced at $20. It opens hot on the exchange at say $35, the client has a $15 gain.
This is also usually a commission free transaction. The client would also have to be provided with a prospectus pior to the stock going public.