How Do You Purchase Stock From a Company That is Going Public?

You are talking about an IPO (initial public offering). You should be able to get information (e.g., company research) from a stockbroker. Also, visit an online search engine (e.g., Bing or Google), type in the company name, and see what information you get. If there is an address or toll-free telephone number for the company’s “shareholder relations” department, call it. As for purchasing an IPO stock, you may or may not be able to buy shares directly from the company. You will need to ask. You might need a broker to purchase shares.

Online purchasing may be cheaper than a broker, but you will get no personal advice beyond what is on an online brokerage firm’s Web site. Beware of IPOs in their initial “hype” phase. Often, prices cool dramatically by the time small investors are able to buy shares. You may want to wait until the initial buying frenzy cools down.

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