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Technology Stocks : E*TRADE IPO Alert - Y2K and Beyond (EGRP) -- Ignore unavailable to you. Want to Upgrade?

To: ChopChop99 who wrote (4293)	4/5/2000 4:26:00 PM
From: sjemmeri	Read Replies (3) \| Respond to of 10270

Below is the new Flipping explanation from ETrade (in response to your efforts no doubt). BTW, I still think there is a bug in their software such that the penalty is implemented incorrectly. ETRADE's IPO Flipping Policy ETRADE defines "flipping" as the practice of selling IPO shares within 30 calendar days of the date an IPO is first publicly traded. A customer who has been allocated IPO shares and proceeds to sell them within 30 calendar days is a "flipper;" a customer who has been allocated IPO shares and holds them at least 30 calendar days before selling them is not a "flipper." Because one of the most important goals of the IPO underwriting syndicate is to try to ensure a degree of price stability for new issues, ETRADE would prefer that customers hold their allocated IPO shares for at least 30 days. ETRADE will not in any way impede the sales of shares, but customers who are categorized as "flippers" will be subject to ETRADE's flipping restrictions (see below). This flipping restriction applies only to IPO shares bought at the offering price. Shares bought on the secondary (public) market are in no way subject to this flipping policy. What the ETRADE Flipping Restriction Means Customers who have flipped IPO shares will be restricted from receiving shares of future IPOs for 60 calendar days from the first trading date of the IPO whose shares they flipped. The following chart illustrates this policy: Customers Allocated "XYZ" IPO Shares January 7 Date "XYZ" Shares First Publicly Traded Date Customer Sold Some or All Allocated Shares Customer Restricted from Receiving Future IPO Shares Until? A January 8 January 8 March 9 B January 8 January 27 March 9 C January 8 February 10 No restriction, not a flipper Customers who do flip IPO shares will receive a penalty notice by e-mail. If you receive one of these notices, you may still be able to place a Conditional Offer on future IPO shares during the 60-day penalty period. However, your account will be restricted from receiving shares of the IPO during the allocation process. Exception to IPO Flipping Restriction: Customers are not penalized for flipping follow-on offerings because those securities are already established in the secondary market.