How to Invest in IPOs
Topics Covered
What is an IPO?
Why Invest in IPOs?
The IPO Process
How to Get Access to IPOs
Vocabulary Reference
What is an IPO?
Why invest in IPOs?
Why invest in IPOs?
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The IPO Process
The IPO Process
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An external IPO team is formed, consisting of an Underwriter, Lawyers, and auditors.
Disclosure information regarding the company is compiled, including financial performance. This becomes part of the company prospectus, which is circulated for review.
The audited financial statements are included in the prospectus.
The company files its prospectus with the SEC. Once SEC comments are cleared, a date is set for the offering.
How to Get Access to IPOs
Here is a brief outline of the process of purchasing an IPO,
below each step is the common objective of the investor during that stage.
Price range is set
The Issuer decides on the total number of shares that it will issue in the offering and sets a price range per share.
When the investor would want to be aware of the offering
Orders are placed
Potential investors research the Issuer’s prospectus before placing a conditional offer to buy.
When the investor would want to place an order
Shares allocated
The day the offering becomes effective, investors are allocated shares. They may receive some, all, or none.*
When the investor would receive an allocation
*There is no guarantee of an allocation in any offering
How to Get Access to IPOs
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The IPO Marketplace
Download the ClickIPO app to get started…
Securities are offered through Click IPO Securities, member FINRA/SIPC. This material does not constitute an offer to sell nor the solicitation of an offer to buy any security. This can be done only by prospectus. IPOs involve specific risks. Please read our IPO Risk Disclosure Statement.