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The Basics of Initial Public Offerings


As Director/Investments of The CR Wealth Management Group of Stifel, David Stone provides clients with a coordinated approach to asset allocation. David Stone and the Stifel team offer a range of fee-based strategies, as well as initial public offerings (IPOs).

IPOs are traditionally arranged via a broker-dealer, broker-dealer group, or investment bank. They involve the purchase of shares from the company going public, with the shares distributed to investors. When interest in an IPO is high, the shares often find their way to institutional investors that are willing to take major shareholder stakes. Because the shares associated with IPOs are often quite limited, one investor or investment group obtaining more than 10 percent of the allocation is extremely rare. 

Individual investors typically access sought-after IPO holdings through large asset managers. Unfortunately, in some cases, not all investors interested in high-profile IPOs are able to participate, as many are seeking to get in on the ground level and not enough shares are issued to meet demand. David Stone offers a conduit for his clients to explore IPO investment opportunities.

Asset allocation does not ensure a profit or protect against loss.

Stifel, Nicolaus & Company, Incorporated
1095 Avenue of the Americas
3rd and 4th Floor
New York, NY 10036
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