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how can I buy some facebook stock before it goes public?
01-16-2013, 10:45 PM
Post: #3
 
You CAN NOT as a member of the general public buy a stock that is not yet available to the general public. You must wait for the Initial Public Offering (IPO)
There is no such thing as pre-IPO stock, regardless of what you think

The banks and investments that you think are selling a stock before the IPO may be selling private shares but they are NOT selling stock that will be made public.. They are taking indications but they are not and can not by law trade these shares.

When an IPO is issued, the underwriter will allocate stock to the selling syndicate to further sell to the general public. The selling syndicate are those broker/dealers that agree to hold[ the underwriter sell the new issue. They are also prepared to take down (participate) in a new issue regardless is it is a "hot" issue or a bad deal.

Those customers of syndicate members who have either substantial size accounts or do heavy trading volume or those customers who have shown that they will hold new issues until the syndicate is closed will be the ones who will be offered the new issue
So unless you meet any of these criteria, you chances of participating in the new issue are slim to none.


Follow up to JOEYV’s comments. I’ve been in the industry for over 40+ years. I have been involved with underwritings in both equities and fixed incomes for many years. The stock issued to employees is NOT considered “pre IPO”, it is usually lettered stock issued not only to employees but to professional service groups that provide support to the company. The market for such stock is very limited and it does NOT address the question asked here.

I am not a silly investor, I do not have a broker, but I do know the rules & regulations since I spent time writing some of the major rules that still part of the ACT of 34. I’ve been a member of selling groups and have participated in large syndications as defined by the ACT of 33, I’ve been member of exchanges, managed member firms including floor trading operations on several floors both in the US and in Europe.
Don’t jump on someone you know nothing about, especially with your limited experience, I have hired and fired people like you. Needless to say, I was not impressed with you silly rant that proves nothing except that you can not accept people that may have more experience and a better understanding of the industry than you,
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Messages In This Thread
[] - Josh - 01-16-2013, 10:45 PM
[] - A nobody - 01-16-2013 10:45 PM
[] - Gregory S - 01-16-2013, 10:45 PM
[] - zuma - 01-16-2013, 10:45 PM
[] - JoeyV - 01-16-2013, 10:45 PM
[] - Sodabeh - 01-16-2013, 10:45 PM

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