Hi I have been reading through the forums. I am an amatuer investor. Just turned 20 and I do not have much to invest but I know by the time I need the money when I am old I will be set. I have had no one to teach me about the Stock Market, so much I learned is by reading and researching.
Anyways I was sad that I missed the Dot.com era back in the late 1990's but I was too young and didnt care about much. So I see Google as the last company from that era that is still up for grabs.
I was reading in the forum and something puzzled me. I have never participated in an IPO. Google I am hoping to participate it in. This statement was said in one of the forum post: [webmasterworld.com...]
more specifically this qoute:
The trick is getting a hold of the stock in the first place. Exactly. Don't think every firm around the country isn't already aware of the potential ipo. My brother is a broker and when I asked if he thought he'd be able to get any he laughed (which means simply, NO).
I am wondering what that means. I thought i could buy it off of my brokerage account. Fill out the necessary forms and buy a chunk of it. But what ur saying makes me confused. Im sure alot of brokerage services will have the ipo, or they will somehow get the ipo through another company. I'm confused:P
well what about the most recent IPO's, netgear, red envelope, etc, you mean even if i wanted to participate in those it would be harder. your telling me it will be hard for me, nearly impossible. I want to know why? Can someone explain why I cannot be part of it. I know the wealthier will get a hold of it, but not every peice of it.
Ok another quaestion. Since the chances of getting into the IPO look dim, the first day of trading is when to buy right? hopefully it will not surge up too much even though it looks like it will. Even if it does, we can buy it on the first day of trading like a regular stock? I know these are simple questions but, ive never participated in an IPO
I just wrote a long and detailed answer to the why part of your question, but i erased it (happy to email it to you later) The "what do I do" answer in my opinion (Series 7 broker) is get a margin account - watch the stock rise the first day and short it (sell first) - When the profit takers sell off and the stock comes back down, buy it back. Now you own the stock and made a good margin.