facebookhow does an IPO work? can i buy shares from it? - Seedly

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Anonymous

18 Apr 2019

Stocks

how does an IPO work? can i buy shares from it?

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Generally an IPO is a private company that wants to go public, and is offering to sell a certain portion of it's company to the public market like SGX so that people like you and I are able to have a stake in it. IPOs only happen when becoming from private to public, meaning trading on an exchange, and usually only happens once in a firm's lifetime, unless they delist and list back again.

You can easily subscribe to an IPO at your nearest ATM, which will pull up all IPOs happening currently. but like what Mr Gabriel Tham said - it is by balloting system. An oversubscribed IPO (meaning if firm is selling 100 shares, but public wants to buy 120 shares) may result in you being unable to get your desired no. of shares.

An IPO occurs when a company wants to sell stock shares to the general public. It will conduct an IPO to do so. Growing companies that need capital usually use IPOs ti raise money. In an initial public offering, the company raising capital, brings in investment banks that help help determine the best type of offering price for the market offering.

yes you can buy IPOs

I think you need to know what an IPO is: https://www.investopedia.com/terms/i/ipo.asp...

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