Investing

How to buy stock at IPO

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  • Sep 20th, 2020 12:48 pm
[OP]
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Jan 27, 2004
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How to buy stock at IPO

Sorry. New to investment in Canada/USA
How do we buy stock at IPO price in Canada and US?

I have a HSBC investdirect account too
2007 - Ipod Video (TD), Ipod Shuffle (GM)
2006 - Ipod Nano (TD)
2005 - Ipod Shuffle (TD)
10 replies
Deal Addict
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May 6, 2010
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Markham
I think your brokerage has to be part of the tombstone crowds. Your brokerage would allocate its shares to the subscribers.
[OP]
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Jan 27, 2004
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dec12 wrote: I think your brokerage has to be part of the tombstone crowds. Your brokerage would allocate its shares to the subscribers.
So is not something i can just buy or do the transaction through my investment acc?
2007 - Ipod Video (TD), Ipod Shuffle (GM)
2006 - Ipod Nano (TD)
2005 - Ipod Shuffle (TD)
Jr. Member
Mar 29, 2016
123 posts
88 upvotes
Toronto
Anyone familiar with how to invest in Pre-IPO stocks (SoFi, Airbnb , SpaceX etc) in US ? As a Canadian citizen are we allowed to invest in US Pre-IPO using Late Stage Management or EquityZen platforms?
Main reason of purchasing Pre-IPO funds would be to get access to shares/stocks prior to Public release.

WebSITES:
https://latestagemanagement.com/
https://equityzen.com/

Any advise?
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Dec 24, 2007
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BC
As a retail investor you're not going to be able to get into any hot offerings as investment banks will allocate to their preferred investors first before it ever gets to the retail level. You might lucky to be the 10% that get some shares if you're big trader but mostly likely you'll get nothing. Any shares that do get to the retail level are often shares that the big investors don't care much about, in which case the shares are either too risky or not worth the hype.

If you think you will score big with IPO shares by buying at IPO prices as a retail investor, you're just gambling.

US News - How to buy IPS Stock
Newbie
Dec 7, 2008
25 posts
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Toronto, Ontario
For US IPO stocks, most companies that IPO in the US would not bother to go through the offering process/registration requirements for Canada and so as a practical matter they are not available until they become open for retail trading. Even if that were not the case, as WetCoastGuy mentioned, they go to their preferred customers - those with large accounts or do lots of trading. Further, it is really a gamble. We tend to remember the last big ones (like Snowflake) and forget the ones that did not do well post-IPO (Uber and Lyft come to mind from just a year ago).

I am not familiar with the Canadian IPO stock process and so someone else may be able to shed light on this.
[OP]
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Jan 27, 2004
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Still trying to find the process for US/Canada

In Asia like Malaysia, u fill up the form and then lucky draw pick..
2007 - Ipod Video (TD), Ipod Shuffle (GM)
2006 - Ipod Nano (TD)
2005 - Ipod Shuffle (TD)
Deal Fanatic
Jul 1, 2007
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kiasu wrote: Still trying to find the process for US/Canada

In Asia like Malaysia, u fill up the form and then lucky draw pick..
If an IPO is accessible to you, it's probably a garbage company and you'll just end up losing your money on it.

If an IPO is truly hot (ie: Snowflake this past week) then you simply won't have access to it. A limited number of shares are offered through those investment banks doing the financing for the company and those shares are sold to the top clients at their affiliated brokerages.

Bottom line, you don't need to worry about IPOs.

Stick to ETFs.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Jr. Member
Jul 16, 2020
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how much does it need to buy stock at IPO?
[OP]
Deal Guru
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Jan 27, 2004
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Thalo wrote: If an IPO is accessible to you, it's probably a garbage company and you'll just end up losing your money on it.

If an IPO is truly hot (ie: Snowflake this past week) then you simply won't have access to it. A limited number of shares are offered through those investment banks doing the financing for the company and those shares are sold to the top clients at their affiliated brokerages.

Bottom line, you don't need to worry about IPOs.

Stick to ETFs.
Any info how to buy ETF or how does it work
2007 - Ipod Video (TD), Ipod Shuffle (GM)
2006 - Ipod Nano (TD)
2005 - Ipod Shuffle (TD)
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Dec 24, 2007
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BC
ETFs are Exchange Traded Funds. They are basically Mutual Funds that you can buy from the Stock Market like company shares.

If you're new to investing, I suggest reading up on investing from CanadianCouchPotato.com Trying to chase "hot" stocks and "big returns" is an exercise in futility for the average investor.

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