How do you purchase IPO stocks?


Quick Answer

For individual investors, purchasing IPO stocks is extremely difficult, as explained by Investopedia. Companies gearing up for an IPO typically offer their stock through a specific investment bank that serves as a gatekeeper in the purchase process. These banks tend to allow only their most preferred and best-known clients to make purchases on IPO stock.

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Full Answer

Different banks and brokerage agencies may have different rules for allowing customers to purchase IPO stock. For example, TD Ameritrade has specific eligibility requirements for IPO purchases, including requiring purchasers to be account holders with either a minimum account balance of $250,000 or a trading frequency of at least 30 trades over the last 3 months.

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