Can Anyone Get In On the Facebook IPO?

You really like Facebook or myspace. You believe in it. You want a item of it. So you want to get in on the Facebook or myspace IPO. But to do that, you have to be an "accredited trader," significance that your net value needs to be above $1 thousand, your yearly earnings needs to be over $200k and you must be able to approve that you have encounter making an investment in personal organizations. Whew!

So you contact up Buy Facebook likes or myspace and confirm that you are an approved trader. Then you tell Facebook or myspace that you want to buy their stock at the pre-IPO cost of $20 a discuss (hypothetical.) But they tell you that all the pre-IPO stock is gone. All of the stock has been marketed to financial commitment investment organizations, protect resources and other many.

You hold up the cellphone, damaging your go and think, "I'm SOL. How can that be?"

Here's how it performs for Joe Community. Your only choice is to buy the stock at the IPO cost and that's only if you can get it. Keep in mind, the Buy Facebook fans or myspace IPO will basically be stocks of stock available on the industry. Their stock is depending on provide and requirement.

So you contact your agent and ask him to get you Facebook or myspace stock at the IPO cost (say $50 dollars hypothetically,) only to understand that the Facebook or myspace IPO was marketed out and you can't get any stock at that cost either.

You hold up. Only now, you're disappointed because you're starting to understand that the phrase "Initial Community Offering" should really be known as Preliminary Non-Public Providing...

What's going on here? How is it that you can't get stocks of what is expected to be a first public offering? Where's people part?

This is how the encounter performs. Investment financial organizations take plenty of organizations public and they need to offer the stocks to someone. Some of these organizations are champions. Others are poor performers.

The simplest way for the financial organizations to take organizations public is to provide them to organizations like common resources and protect resources because they have much more cash than Joe Community. In convert, the common resources and protect resources organizations "put in" for almost every organization the financial organizations provide - even the not so hot IPOs. This is so that when the hot ones like the Facebook or myspace IPO come down the pike, they are confident of a significant stock allowance and generate earnings.

The financial commitment financial organizations have tried to provide more stock to people but they need huge customers like the common resources and protect resources. It's the common resources and protect resources organizations that buy and create a public industry for the stock to start dealing.