How do I get in on an IPO?
Nita asks:
I want to get in on the IPO of New York Mercentile Exchange (NMX). It goes public on friday. Can I buy an IPO through scottrade? If not can I buy the stock on the market on friday? Please help! this stock is gonna skyrocket!
I want to get in on the IPO of New York Mercentile Exchange (NMX). It goes public on friday. Can I buy an IPO through scottrade? If not can I buy the stock on the market on friday? Please help! this stock is gonna skyrocket!
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The only ones that get the shares is the big investment bankers. You would have to by it once it hits the market. set your price , do not go for a market trade.
Find out who is underwriting the IPO… then call those firms to see if any shares are left (odds are, it’s it a hot IPO, you won’t be able to get shares). About the only way to get in on a hot IPO is to be a regular customer of those who do the underwriting… I suggest establishing an account at one or more of those firms and indicate your interest in upcoming IPO’s. Although you may have missed this one, you will certainly have other opportunities. Once this stock trades on the open exchange, however, if you still like it, buy it. I’m sure you’re aware of how volatile IPO’s can be… good luck.
Mike S pretty much nailed it. Unless you are a current client (with a lot of assets generating a lot of revenue) for one of the underwriting firms, chances are you will not be able to get shares. If Scottrade is part of the syndicate (the group offering shares to the public) then you might be able to get shares.
Looks like JP Morgan Chase and Merrill are joint lead underwriters, so it’s probably impossible to get these shares.
Be very careful trying to buy a new issue on opening day. If it’s a hot issue, you could get burned trying to buy it. Many, many times you’re better off waiting until the “lockup period” is over. This is usually around 6 months after the IPO when many insiders can sell their shares, all this supply hitting the market at the same time may bring the price below its IPO price. So it may pay to wait!
If not a big player or know someone - likely OOL. I doubt Scottrade part of IPO group so even less likely. Really doubt it will skyrocket as is as priced pretty high.