>Would someone mind explaining how one places an order for an IPO? I trade through TD's Greenline Discount Brokerage.
unfortunately, i've never had the pleasure of participating in one. TWE will hopefully be my first via waterhouse. fwiw, here's an excerpt from waterhouse's webbroker (i.e., their online trading interface).
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Rules and Regulations for IPO Investing
How to participate in an Initial Public Offering at Waterhouse Securities, Inc.
CONSIDER YOUR INVESTMENT OBJECTIVES
Initial Public Offerings (IPOs) can offer high returns but also involve potentially high risk. Waterhouse Securities is not endorsing any particular investment by making it available to our customers. As with any investment that you make through Waterhouse Securities, you must determine whether a particular security is consistent with your investment objective and risk tolerance.
PURCHASING IPO SHARES
To purchase IPO shares, you need to complete the following steps. You must Register, View Offering Materials and Place a Conditional Offer. For more detailed information, please review our FAQs. Please note that the opportunity to purchase shares in any IPO will be substantially limited in the event of high demand.
1. Register
You must submit your personal and financial profile on the Registration page. This profile will then be compared to eligibility parameters that have been defined by Waterhouse. If your profile is deemed eligible, you can proceed to view offering materials.
2. View Offering Materials
IPOs are offered and sold by way of an official offering document called a prospectus. The prospectus is filed with federal and state securities regulators as part of the registration statement which must be declared effective prior to the issue. After the prospectus has been filed but before the offering is declared effective, offers to sell the securities can be made using a Preliminary Prospectus or "red herring." The Preliminary Prospectus generally indicates a range of prices within which the issue is expected to be made. If you are interested in a particular offering, you may link first to the Rule 134 Notice which contains basic information about the offering. You may then proceed to the Preliminary Prospectus, after which you may place a Conditional Offer.
3. Place a Conditional Offer
During the period when the preliminary prospectus is pending, you will be able to enter "Conditional Offers" to purchase securities in the particular offering when and if issued. These offers cannot be accepted until the registration statement for the offering has been declared effective by the Securities and Exchange Commission (SEC). Once you have submitted your Conditional Offer, you will receive an order identification number and will be able to view the Conditional Offer on the IPO Order Status page.
Upon the registration statement being declared effective by the SEC, we will contact you via e-mail to notify you of the effectiveness of the registration statement and the price as determined by the managing underwriter. You will then be required to respond to us on the date that we contact you to confirm your previously submitted Conditional Offer if you still wish to participate. If you fail to confirm your Conditional Offer, your order will be automatically canceled. Conditional Offers are accepted at the offering price, determined when the registration statement becomes effective. Please note that placing a Conditional Offer does not guarantee an allocation of shares. |
