What would/should the "small" investor invest in?

Discussion in 'Economics' started by gastropod, Dec 30, 2010.

  1. I am wondering, "What would/should the "small" investor invest in? What pisses the "small" investor off - like 'closed' IPOs, frontrunning trades, etc.?" What sort of IPO would it take to take the small investor off the sidelines and into an IPO? I am looking for relatively specific answers here....would an IPO from GS REALLY attract the small investor? If not GS, then who? (I am looking for questions/answers that specific)


  2. I should have mentioned....what about government involvement in an IPO - how much does that add/subtract from an IPO? Environmental - if the company is enviro friendly/foe?


  3. Are you asking if there is a specific advantage or edge to trading an IPO? Or specific ingredient in an ipo that would make one ipo a better buy over another ipo?

    At one time I thought the playing field might be closer to level regarding a purchase of an IPO based on the fact that not all information is known since the ipo has no prior history trading.
  4. There only 2 ways we can 'consistently' make profits in stock markets.
    1. Front running
    2. Insider trading
  5. That about sums it up. SEC is to enforce the above for the wall street banksters....hell you can send evidence of a Ponzi scheme (aka Madoff) and they still don't lift a finger.

    Add in the HFTs you have a consistent way to lose money.
  6. There are all sorts of questions in here, so I am not clear on what you are asking but wanted to clear up some assumptions you made.

    Small investors are typically not able to invest in IPOs and I don't think even if they were, it would be very attractive to very many. Google was on that was available to everyone but I think they are confusing and risky enough to keep the small investor away.

    Goldman Sacks is already a public company, do mean on IPO where GS is the lead underwriter? That happens a lot.

    What is your definition of a small investor? What specific question are you trying to answer?

  7. Oh small investors would never be front run, it makes no sense, you would only front run a large order, otherwise there wouldn't be any reason to do so. Are you going to front run an order for 100 shares with a smaller order to make a fraction of a cent? Plus its illegal so it happens much less than people assume.
  8. I am thinking of starting a company, but I would want it to be the most open company possible. I would want the IPO open to everybody. I would want it to be a chance for even the small investor. What would you want to see in such an IPO?

  9. I doubt the choice is yours. I think sec law governs who is allowed to buy an IPO. (accredited - whatever standards those are, also allocation to brokers)

    I suppose sec law is designed to protect us from ourself, ya think?

    also, when I read Cramers IPO TSCM, he was working at GS at the time and they did the IPO and I was surprised by two things, first how little he knew about doing an actual IPO and how he basically had no say in anything, he was out of the loop once things got underway. Cramer's a noisy guy and I find it hard to believe no one kept him informed.
  10. Invest in yourself first.
    Without health you have nothing.

    Invest in your brain.
    Without knowledge you will not succeed.

    Invest your time.
    Learn from the mistakes of others. You wont live long enough to make them all yourself.

    Invest your passion.
    Without passion you will lose interest and fail.

    With health, knowledge, practice and passion, you have the best chance for success. Now pick something. Pick anything. Have at it. Take care.

    Live long and prosper.
    #10     Jan 1, 2011