Business & Finance Stocks-Mutual-Funds

How To Buy An IPO

If you're reading this, you are just like millions of investors who not only want to learn about one of the most profitable ways to invest in the stock market, but also have that question of How To Buy An IPO and want to potentially live a better life with the possibility of scoring big on IPOs.
How To Buy An IPO is a very simple process and its something that many investors simply have no idea how to accomplish.
There is a stigma with IPOs and it is thought sometimes that "I'm not a big player and I don't have tons of cash to invest, so how can I do it"? How To Buy An IPO is just as simple as buying any other stock, but its the process that you need to learn and once you do that, you can get into any IPO you wish to.
How To Buy An IPO technically has two answers.
The first is to get into what is known as the "pre-market".
The pre-market is generally reserved for big players and investors with huge amount of cash.
The other answer to How To Buy An IPO is by investing in the "after market".
The IPO pre-market has one very big disadvantage and that is, when an investor buys in the pre-market, he or she is subject to a certain rule that could potentially enable them to lose a tremendous amount of their initial investment.
This rule is called the "lock up agreement" and basically this says that an investor in the pre-market can not sell their shares until the lock up expires and that could be as long as 90 days.
If an IPO tanks after initially popping, the pre-market investor simply watches as their profit disappears and can do nothing about it.
During my career as an IPO analyst and an Investor, I have always shied away from the pre-market and have not only directed my clients into the after-market, but this is where I have invested heavily and as a result, have seen my life change in literally 5 trades.
How To Buy An IPO in the after-market is the smartest way to go.
In the after-market, the investor has full control of their shares and are not subject to the lock up.
If the investor chooses to buy shares of say, the LinkedIn IPO and initially the IPO jumps and then shows signs of a fall, the investor gets out with a healthy profit while others are stuck.
How To Buy An IPO in the after-market is done by calling in to your respective brokerage during the morning of the debut of the IPO you choose to invest in.
What needs to be done is, the investor needs to place what is known as a "limit order" on the IPO.
A limit order is a stock order which specifies the number of shares an investors wants to purchase within a certain price range.
For example, if I wanted to buy shares of the LinkedIn IPO, I would call up my brokerage and ask tell them the following: "I'd like to place a limit order on the LinkedIn IPO (make sure you specify the stock symbol too) for 100 shares with the limit price of $20 per share, good for the day.
" What that means is, you wish to buy 100 shares of the LinkedIn IPO as long as it debuts at $20 or less.
When it does debut, your order will execute, as long as those parameters are met and you will have bought the first available shares of the LinkedIn IPO.
In the end, How To Buy An IPO is a very easy process and now that you know exactly how its done, making money on IPOs could be the very thing that catapults your wealth and helps you live a better life.
It did for me.
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