What is the best brokerage to use when buying IPO’s?
Floyd asks:
I am very new and have a few thousand to play with. Im thinking Scottrade or E-trade. Thoughts?
I am very new and have a few thousand to play with. Im thinking Scottrade or E-trade. Thoughts?
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for IPO you need not have to go through Broker - you cvan directly subscribe. In fact corporate appoints brokers and sub-brokers who will assist you and they are paid very little commission by coprorates. Since the volume is high, on single day (or 2 or 3 days) transaction they get considerable sum without any investment.
To be able to buy shares at an IPO price you need to be a high networth and be with a large brokerage house like Merrill Lynch, SmithBarney, Morgan Stanley,..etc..
If you have enough $ invested with them they will let you in the up and coming IPOs and you will buy stock at the IPO price. Otherwise you will have to buy the second the shares are offered in the open market. This could be very tricky as you will have to constantly monitor the company to find out when they intend to price their shares, and then you will be part of the market which means that shares could go up or down from the IPO pricing. Schwab used to have an IPO service, but here again it was reserve for their private clients.
If you only have a few thousands play the open market instead until you become a high networth investor.
Good luck.
May be you can try this sites:broker-valas.blogspot.com/
orwww.marketiva.com/?gid=3916
google-advertising-no1.blogspot.com/
You need a lot of money and be with a big brokerage firm in order to get an oversubscribed IPO. A story about an IPO will normally list the lead underwriter and major underwriters.