| Frequently Asked Questions About Investing in IPOs |
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Q: Can I buy an IPO at the offering price? A: Not unless you are either a large institution (such as a mutual fund or venture capital firm) or maintain an active trading account with one of the brokers that's offering the deal. Wall Street is a "club" of sorts and people who are in the club stand to make money. Those of us outside the club are always seeking ways in. Recently, the online brokerages have been able to offer some shares of select IPO offerings. Inquire with the online broker of your choice as to whether they can offer you shares of upcoming IPOs. There has been speculation that the individual investor is going to break into this previously untapped market very soon.
Q: I am new to IPOs and the terminology confuses me. Is there an online reference? |