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Bothers me that institutional investors and other insiders get preferred pricing while retail investors get less favorable pricing.
by champagnepapi 9y ago
Bothers me that institutional investors and other insiders get preferred pricing while retail investors get less favorable pricing.
- JumpCrisscross 9y agoTo be fair, institutions are often negotiating with underwriters on the pricing. That kind of price discovery doesn't happen with retail investors.
- lallysingh 9y agoThey also commit to purchase large amounts before the final demand is known. Their price is a combination of a bulk discount and risk discount.
- acchow 9y agoSo this isn't true. Any average Joe could open a standard trading account and subscribe to the IPO.
- prklmn 9y agoThe access to shares still isn't even comparable
- dx034 9y agoIt is. The quota you'll get is the same. Just that large companies have more time to analyse and talk to others and can better estimate how much potential the stock has.
- beamatronic 9y agoFidelity has a minimum of $100k or $500k to participate in IPOs depending on the specific IPO
- acchow 9y agoThen I'd suggest going with etrade or schwab.
- prostoalex 9y ago> retail investors get less favorable pricing until today, that is