How can broker-dealers survive and thrive in the brave new world of zero-commission trading?

The recent decision by Charles Schwab to offer zero-commission trading and the resulting domino effect among its competitors have triggered tremors throughout the online brokerage landscape. Ever since free trading was pioneered by Robinhood in 2012, many observers expected this model to eventually become the industry standard. That perception became reality this month as major online broker-dealers Schwab, TD Ameritrade, E*Trade and Fidelity all announced their adoption of

Confused about who gets IPO shares? The inside scoop on how IPOs are distributed

Between Uber (UBER), Chewy (CHWY), Beyond Meat (BYND) and other companies going public this year, investors have had their eyes on IPO news. Seeing the increase in companies making the decision to go public, many investors are beginning to wonder how they can get a piece of the next hot IPO to hit the market. Unfortunately, purchasing shares in an initial public offering at the IPO price isn’t as simple as one might hope, and it’s important for investors to

Why Offering Retail Access to IPOs Can Bolster Business for Online Brokerages

According to Renaissance Capital, of the 64 IPOs priced this year, 40% have landed at the high end of their expected range or above. Needless to say, IPOs are hot right now and 2019 is on pace to beat out 2000 as the best year for IPOs. Several studies have also pointed out that if you buy shares of a company at their initial public offering price, you can actually beat the S&P 500. This is great news,

The Shrinking Stock Market

The stock market may be shrinking, but we’re here to help Last year, Jeff Sommer at The New York Times wrote a poignant article, “The Stock Market Is Shrinking. That’s a Problem for Everyone,” that explained the changes in the stock market over the last few decades. Sommer noted that in terms of volume of public companies, “The market is half the size of its mid-1990s peak, and 25 percent smaller than it was in 1976.” The article

Pros & Cons of a Direct Listing vs. an IPO

In late June 2019, the cloud-based collaboration tool Slack (WORK) debuted on the NYSE as a publicly traded company. However, the company didn’t take a traditional IPO route where companies find an underwriter who will help raise funds for the IPO shares, find investors and then ultimately list on the public markets. Slack went with a direct listing, which means no new shares were sold to raise additional capital. Spotify did this last year and had success, as a well-known

Thinking of going public? Think outside the box to reach investors…

Going public is a big step for CEOs and CFOs. The decision to become a publicly traded company can be a daunting task for the senior management of the company. Consequently, companies typically enlist the services of an investment bank to help them navigate the public offering process. This includes advising on all aspects of the public markets including assessing the public market value of the company, determining who may be the companies target investors, as well as how much

Why invest in an IPO?

Historically, the IPO market has long been an exclusive club of institutional and high net worth investors, with average individual investors left empty-handed and clamoring to find a way to get their hands on IPO shares. It’s understandable, who hasn’t heard a tale of someone investing in companies like Google or Amazon during their public debut only to become wealthy a few years or even months later? After all, there’s a lot of media attention focused on IPOs, particularly the

Who Can Invest in an IPO?

The world of investing includes individual investors from many different walks of life, all with different opinions of what to invest in and all with varying levels of risk tolerance. There is one thing that most investors tend to hold in common though, the desire to make money on their investments. While any investment has risks, IPOs are attractive as a ground floor opportunity to purchase shares at the initial offering price . The desire to participate at the initial

4 Things to Know Before You Invest in Your First IPO

Initial public offerings have long been the domain of the wealthy and institutional investors, but the Internet is starting to level the playing field. Now more than ever, IPOs are accessible to regular investors who may not have hundreds of thousands of dollars to invest. While the rewards from an IPO can be fruitful long term—one only has to look to Amazon, Apple, and Google as examples—the road is also littered with those that flamed out once they started trading as

The Legacy of Loyal3

By: Scott Coyle, CEO There’s been plenty of chatter about Loyal3 shutting down operations and transitioning users off its platform. There’s been quite a bit of vitriol as well, so we thought we’d comment on this news. You see, Loyal3 was not successful with their particular model of fee-free brokerage, but they did prove something, and they were, at least in part, trying to solve an important problem in the public markets. Specifically, Loyal3 showed that IPOs could be offered to everyday

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