You must logon to see the FAQ; here is a copy from the WH web site:
'What are Initial Public Offerings (IPOs)?
An IPO is a corporation's first offering to the public of a security representing shares of the company. Growing companies typically use IPOs to raise capital for future business expansion. Generally, an underwriter prepays the issuer for its stock and then goes to the public market to sell it.
Why are individual investors often excluded from traditional IPOs?
IPO shares are generally reserved for institutional investors and preferred clients of full-price brokerages.
How is my eligibility to participate in an IPO determined?
As a basic eligibility requirement for IPO trading, you must have a minimum of $50,000 equity with Waterhouse and have effected a minimum of four trades within the preceding 12 months. You will additionally be required to meet certain eligibility criteria with respect to your investment objectives and financial status.
What is the process for subscribing to an IPO through Waterhouse Securities?
Prior to subscribing to any IPO through Waterhouse Securities, you must first register and meet certain conditions for eligibility. When you are determined eligible, you will receive an e-mail message notifying you whenever a new IPO is posted on our web site under the IPO Offerings section. After you review the Rule 134 Notice and Preliminary Prospectus, you may enter a Conditional Offer for IPO shares. After the offering is priced, if you have been included in the allocation, you will be notified by e-mail and required to promptly confirm your Conditional Offer. You will thereafter be notified by e-mail if you have received shares in the offering. Full payment of the purchase price is due on the settlement date for the IPO. Note that while conditional offers may be placed for any IPO listed in the IPO Offerings section, the opportunity to purchase shares in a particular offering will be substantially limited in the event of high demand and there can be no guarantee of share allocation.
What is confirmation of a Conditional Offer?
According to SEC requirements, customers who place Conditional Offers must confirm their order after an IPO is priced. Once the offering has been priced, e-mails will be sent to all customers who placed Conditional Offers requiring them to confirm their order. To confirm a Conditional Offer, you must go to the IPO Order Status page and select the Conditional Offer that you had placed. You will then be required to confirm your Conditional Offer. If you fail to confirm your Conditional Offer, the order will be automatically cancelled.
How can I cancel my Conditional Offer?
To cancel your Conditional Offer for an IPO, simply access the webBroker IPO Order Status. Select the Conditional Offer that you wish to cancel. The process is identical to canceling an order on webBroker. You may cancel your Conditional Offer at any time up to the effective date of the offering.
How can I change my Conditional Offer?
To change your Conditional Offer for an IPO, simply access the webBroker IPO Order Status. Select the Conditional Offer that you wish to change. Then, enter a new number of shares and resubmit the Conditional Offer. You may change your Conditional Offer at any time up to the effective date.
How can I learn more about the issuing companies?
The first step to learning about a potential investment is to review the issuing company's Preliminary Prospectus or "red herring". These documents, which have been submitted to the SEC, are available on-line for all IPOs at the Waterhouse webBroker IPO Center. A company's Preliminary Prospectus includes company background information, financial data, investment risks and specifics about the offering.
What happens if an IPO is re-priced?
If an IPO is re-priced by the underwriters, Waterhouse will send an e-mail message to inform all registered customers, even if they have not placed a Conditional Offer. Customers who had placed Conditional Offers must access the webBroker IPO Order Status page and select the previously entered Conditional Offer. After selecting the Conditional Offer, a change order request must be submitted. Failure to change your existing Conditional Offer will result in automatic cancellation.
What happens if there are not enough shares to meet demand?
The IPO e-syndicate (comprised of firms having similar arrangements with Wit Capital) may allocate shares on a first-come, first-served basis or random allocation basis amongst customers of those firms who have placed and confirmed their Conditional Offer to purchase shares in a particular IPO. For each IPO, the e-syndicate will establish the method of allocation as well as certain minimum and maximum allocation amounts.
What are my chances of being allocated shares in a particular IPO?
While the Waterhouse IPO Center is intended to afford eligible Waterhouse customers a potential means of participating in IPOs, high demand for these offerings may substantially limit your opportunity to receive the allocation of shares you request in a particular IPO. Placing a Conditional Offer does not guarantee allocation of shares.
How long should I hold shares I purchased in an IPO?
Registered customers who have track records for buying and holding IPO shares in their account beyond 60 days will have priority in future IPO offerings over other customers. Waterhouse encourages this buy-and-hold approach for IPO investing. Selling of shares within the 60-day period may prevent you from participating in future IPO offerings.
How do I find a list of the IPOs Waterhouse has offered?
Click "IPO Offerings" on the Waterhouse webBroker IPO Center page.
How do I contact Waterhouse Securities with Public offering-related questions?
You can contact an Electronic Brokerage Customer Service Representative 24 hours a day, 7 days a week at 1-800-555-3875.' |
