0

I'm a college student, and I wonder if I can buy stock from a company right after it finishes its IPO?

To be more specific, I'm interested in the IPO of Alibaba, which hasn't happen yet.

If I am not allowed to buy its stocks immediately after they go on sale, how long do I have to wait?

And also who are allowed to buy the stocks at the first minute they are on sale?

  • If you couldn't buy them, it wouldn't have been a Public Offering. – MSalters Aug 13 '14 at 13:17
  • Super Bowl Final tickets are also public offering.@MSalters – Bolun Zhang Aug 13 '14 at 16:38
4

Yes, you could buy a stock on the day of its IPO.

I'm a college student, and I wonder if I can buy stock from a company right after it finishes its IPO?

Yes, you can. However, unless you are friends or family of an employee, chances are you'll be paying a higher price than you think as there is generally a fair bit of hype on most IPOs that allows some people to "flip them" which means someone is buying at a higher price.

If I am not allowed to buy its stocks immediately after they go on sell, how long do I have to wait?

Generally I'd wait until the hype dies down as if you look at most historical IPOs the stock could be bought cheaper later but that's just my perspective.

And also who are allowed to buy the stocks at the first minute they are on sell?

Anyone but keep in mind that while an IPO may be priced at $x, the initial trades may be a few times that value and the stock may come down over time. Facebook could be an example to consider of a company that had an IPO at one price and then came down for a little while on its chart over the past couple of years.

  • 3
    But note that you can't buy the stocks at the IPO price after the IPO. You will have to pay the market price, which will probably be considerably higher. As a small-scale private investor, there's basically no way for you to buy stocks at the IPO price for most IPOs. – Mike Scott Feb 5 '16 at 11:29

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.