How do I get Facebook IPO at initial offering price ?

Discussion in 'Technical Analysis' started by trader12, May 6, 2012.

  1. trader12


    After serious consideration of getting all kind of criticism & insults & may be more I have decided to post this question anyway.

    I would like to get Facebook IPO at the initial offering price. Currently I am a beginner & don't have a trading account with any firm.

    I have some savings & I am willing to take risk, upto $50,000.00 but only in Facebook IPO & nothing else.

    I would like to grab as many shares as possible & turn arount & sell them right away whether I have a profit or loss.

    I think some brokers would like to have a new account & would be willing to give me few shares at offering price ?

    Here are the questions :

    (1) Who should I open account with so that I can get some shares at initial offering price ?

    (2) Can I open several accounts say of $10,000.00 each with different brokers & that way maximize my share volume ?

    (3) If I do get some shares & sell them the same day or within few days, do I get a bad rating next time I want to get another IPO ?

    (4) Do I have enough time to open an account with one or more brokers ?

    (5) Names of brokerage firms who are in a position to allocate shares of Facebook IPO.

    (6) All the Pros & Cons of this strategy.

    Thank you in advance.
  2. nkhoi

    nkhoi Moderator

    its not that hard open with fidelity and tell them what price you want .
  3. trader12


    That is the thing.

    I want pre-open price meaning before it starts trading.

    Usually they wil tell you how many shares they can give you at the pre-open price.

    Once it starts trading, off course you can buy all you want at the market price. Nothing new there.

    Key is getting at the offering price which they are estimating betwen $ 28 & $ 35 a share.

    Once it starts trading it can be anywhere from $ 0.01 to ___ ?
  4. mcteague


    1,2,3 and 4: It might be more difficult than you think. A friend is looking at this IPO. His firm wants 250k on deposit, and an average of 15 trades a month. Then you get to be in a pool of people who might get in.

    5. I pass on what was said to me many years ago by a person very well known on wall street, and now the world.
    "Amateurs lose big. Professionals win small"
  5. To answer some of your questions:
    1. FB underwriters and no one else
    2. 1M minimum if you want FB shares
    3. bad rating- yes. will you get ipo again- yes.
    4. Yes. it'll be distributed to the clients the night before, or in the morning of trading.
    5. Morgan Stanley, JPM are the leading syndicates......all brokerages are probably getting some.
    6. Pros- 99.99% you'll cash in. Cons - impossible to get any shares unless you have impossible amount of money.

  6. dewton


    Also, if I'm not mistaken, you'll need to be an accredited investor having a net worth over $1 million and an income over $200k. It's how the financial elite keep the common folk out of early buyins of their ponzi schemes.
  7. IPO allocations seem to be one of the more misunderstood subjects among retail investors.

    Getting an allocation in a hot IPO is basically free money. Even the average IPO is priced to go up around 10 to 15% when it starts trading, while a hot IPO is guaranteed have a nice pop.

    Its not about you wanting this free money, everyone does. Its about how much commissions you pay the underwriting brokers. It doesn't matter if you have a billion dollar account with them, if you haven't paid them enough you aren't getting shares in a hot IPO. The right way to think about these ipo allocations is that they are basically a commission rebate.
  8. Also, companies are not looking to sell their under priced shares to investors looking to flip their shares for a quick profit. They are looking for long term investors. You can flip these shares but if you do you may be damaging your relationship with your broker.
  9. Not a chance in Hell!

    Hot issue IPO's always go to long established clients and friends... Unless you know someone who can approve you for X amount of shares, good luck.

    The only IPO's you can get are ones that will fall faster then an old lady on a Life Alert commercial!

    Please view very informative video below that is a metaphor for what will soon happen to you if you try to get a piece of the HOT IPO market.

    <iframe width="420" height="315" src="" frameborder="0" allowfullscreen></iframe>
    Plain and simple; HOT IPO's are reserved for the rich and well connected investor. Oh yeah, it also takes years of buying junk IPO's in order to even get considered for any good issues.

    Just remember that thew market is not there to make investors money. It's there to raise risk capital to fund new technologies and the future of the economy! Someone should point that out when opening a brokerage account...
  10. nkhoi

    nkhoi Moderator

    Just ask for pre-open price, money is money, broker welcome it from anybody. Like I said its not that hard or mysterious. Of course there are kind of clients that get exactly what they want but if you have to ask here then you are not at that level.
    #10     May 6, 2012