How to apply for new US stocks? Can retail investors apply for new US stocks?

Recently, perhaps due to the many articles about new stock announcements published on this site , many readers are already eager to try and are ready to make new ones, haha. Many friends sent me private messages via Weibo, asking me how to apply for new stocks in US stocks? Can retail investors apply for new U.S. stocks and other questions? Here are the answers.

Very difficult!


Let me tell you how to apply for new (primary market).

1. U.S. stocks and A shares are completely different subscription methods. Having a U.S. stock account does not mean that you can subscribe . If you plan to apply for new shares of a certain company, then after the company submits an F1 document or S1 document (prospectus), you must contact your broker (the broker is not the first securities or tiger securities that open a stock account for you) , Weiniu Securities , Xueying Securities refer to IPO underwriters, generally Goldman Sachs , UBS , Deutsche Bank , JPMorgan Chase , Morgan Stanley, etc.). Therefore, if you want to subscribe for new U.S. stocks, you must first become a customer of an underwriter (Goldman Sachs, etc.), and then submit a subscription request. If your comprehensive conditions are met, for example, your capital is large enough (generally more than 1 million), and the time to open an account Long enough (make sure you are familiar with the market), etc., generally there is no problem, but it also depends on the number of shares and the number of subscribers to determine how much you can get in the end.

Therefore, the US IPO stocks are only available to investment bank customers. Their brokerage service is called Full Service, and the broker will call based on how important the client is to him. The well-known brokerages such as Interactive Brokers, Scottrade Securities and First Securities are only online discount brokerages, with cheap transaction fees, but without Full Service services, fees are discounted and services are also discounted. Foreigners often say: You get what you paid for, that’s the reason. In theory, if the underwriter is Goldman Sachs and you are a Merrill Lynch customer, you can also apply, but if you encounter popular stocks that everyone is optimistic about, which one is easier to apply for? If the gains of popular stocks are average, it is not interesting. The current general requirement to become a customer of these first-line investment banks is that your assets start at USD 1 million, and some brokers such as China Merchants can also do it. It seems that it starts at USD 200,000. However, if you get popular equity subscriptions through these domestic brokers, the possibility of subscription will be relatively low. .

2. U.S. stock IPO subscription starts at US$1 million. It can be said that this is not a retail game . In addition, U.S. stocks are not A-shares. The opening daily limit, dozens of consecutive daily limit, according to the impression of the past few years (of course, I do not have detailed statistics), there should be more than one and a half of the stocks are broken, including the current Hot stocks: Facebook . At the beginning of its listing, it broke the price because it was overpriced, and it didn’t look up for half a year.

3. If your brokerage is allocated stocks, and you are a major customer, it may be allocated to an IPO . For example, if you are a client of a small brokerage firm and your brokerage is involved in underwriting, then he can get a certain amount of stock, and you may also have a share.

4. Relatives and friends shares . If you have a channel to get to know the top executives of an IPO company, you may get some relatives and friends’ shares. The price of relatives and friends’ shares is generally the IPO issue price, but you don’t have to spend 1 million to become a client of a brokerage firm. It is usually 10,000 shares as a unit. It depends on the relationship. The current (June 2015) rule for relatives and friends shares is: 6 months from the date of listing. You will cry to death if you encounter a trash stock break.

5. Finally, it is emphasized that US stock IPO subscriptions may not make money. When the market is good, the issuance price is high and it is difficult to subscribe; when the market is bad, the probability of a US stock IPO breaking is high.

In a word: US stock IPOs have nothing to do with retail investors, so don’t pay attention. If you want to participate, you can wait to participate after the listing. First, it is easier, and second, after pricing in the market, it is relatively safe.

Further reading :

1. Comparison of US stocks and Hong Kong stock brokers

2. Comparison of Chinese-funded US stocks and Hong Kong stock brokers

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