How do I get in on Visa IPO paying the IPO price instead of the price on exchange?
Vickie asks:
I don’t want to wait till it gets on exchange when the price might be doubled.
I don’t want to wait till it gets on exchange when the price might be doubled.
I want to buy it at $37-$42
what should I do?
Will you also answer this question on whether or not you think Visa stock will produce similar or better result than MasterCard?
http://answers.yahoo.com/question/index;_ylt=ApF31I4vNt2LlLKzhR98Tljsy6IX;_ylv=3?qid=20080311223853AAW5DpV
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It’s actually very difficult. In order to get in on the IPO price, before it is openly traded, you would have to have an account with one of the underwriters. But even then you might not get any shares. They are more interested in the institutional investors than the little guy because that’s where the money is at. You can find out who the underwriters are at the following link. Just click on “all underwriters”.
http://www.ipohome.com/common/ipoprofile.asp?ticker=V
You probably can’t.
Think Retail Distribution.
Manufacturer of widgets calls a promoter and they set a projected retail price (target).
promoter then takes a contract for all the widgets at a price well below the retail. He then gets on the phone and calls all of his wholesalers and unloads (hopefully) all the widgets.
Wholesaler calls all his distributors and (hopefully) unloads all the widgets.
Distributors first call all the chain stores and try to dump all the widgets.
Store offers to sell you the consumer the widgets at retail price.
If the item does just OK, everyone up the chain unloads at a discount. If a major hit, then the price continues to go up from the anticipated retail.. …Simple supply and demand.
You, as the small investor are the retail customer.
You should have talked with your broker about securing the stock at the IPO stage/price!