<p>Krlilies, </p>
<p>Thanks.</p>
<p>
That’s not unique at all, and it leads to customer exhaustion as you have to watch it constantly to see if anything you are interested in is coming up and then get in on it.</p>
<p>11+ days to ship? Wow… it typically takes Amazon 1 day or less.</p>
<p>
</p>
<p>Yes you could. You could buy some 144 stocks from sharepost about 2 two weeks ago. The last auction ended then. You need to be:</p>
<ol>
<li>Accredited Investor</li>
<li>Depends on the company, you may have to invest $100k in that stock all at once.
:)</li>
</ol>
<p>I am not intereted in the 144s. I like liquidity. </p>
<p>I am not thrilled that Schwab wants investors to hold onto ipos for 30 days. Sometimes ipos break the syndicate price. I dont like that and I want out if that occurs. Also… If there is a lot of euphoria I would like to sell part of my position.</p>
<p>Twitter volume on day 1 was 117 million shares… does this include the 70 million IPO shares?</p>
<p>Either way, a lot of people dumped their shares on day 1.</p>
<p>No…the 70 million is not included.</p>
<p>Firms have different rules as to how long investors have to hold onto shares purchased thru an ipo. Schwab gets its allocation from GS so there may be an agreement between Schwab and GS. This is speculation.</p>
<p>
</p>
<p>Most of them will be the day trader’s volume, some will be the ipo shares.</p>
<p>True, but the 70 million initial offering is not included in the 117 million. I think that is what notrichenough was asking.</p>
<p>
You think so?</p>
<p>I guess there is no way to know.</p>
<p>Well…</p>
<p>What is the alternative?</p>
<p>I don’t think it is good or bad, one way or the other.</p>
<p>I am just curious how many people will take the quick profit in an IPO like Twitter’s, and how many will hold for a while.</p>
<p>Those numbers are not available. </p>
<p>Half of 117 million is 58.5 million. 80 million was sold on the ipo. That would mean over 70 percent if the ipo was flipped the first day. </p>
<p>Extremely doubtful. There are institutions and investors that are going to hold for the longer term. Ipo investors can be penalized if they dont hold the stock for a period of time. (Like me). They may lose out on future ipos. </p>
<p>Some Firms that wanted large allocations of a hot ipo often had to actually commit to buying shares the first day… Not sell. I dont know if this is still happening but it definitely used to happen.</p>
<p>Lets say only 5% of the 80M shares sold on IPO was sold again on the first day, that is 4M shares, day trader can churn those 4M shares into 117M volume. If the volume is not from IPO shares, what else could that be?</p>
<p>Yes I think every dealer has some kind of restrictions on ipo shares flipping, some 15 days some 30 days, but not everyone follows, like dstark is one of those…</p>
<p>I have a friend who flipped all his shares on day one, he was blacklisted, so he has not been able to buy any for over two years now. The brokers must share their blacklisted client.</p>
<p>Its common in an ipo that is hot, for the book running manager to send institutions into the after market to obtain part of their requested allocation. Its a sign of a hot deal, and helps the the aftermarket. You can only do it if there is enough institutional interest to support that strategy.</p>
<p>Firms aren’t that worried about “flippers” in hot deals. You need that to keep a lid on the price. They worry about it when the stock rises a point or two and then turns down before they have every order confirmed. At that point you often have an angry company and angry investors, and a potential underwriting loss depending on how “short” the syndicate was at the pricing. If the stock is OTC rather than an immediate listing, the stock that comes back to any firm hits its trading desk and proprietary account directly. All of this speaks to why wall street has to price these deals so that they trade up at least a couple of points after the deal.</p>
<p>“Firms aren’t that worried about “flippers” in hot deals.”</p>
<p>That is what I was counting on with Schwab. I guess because Schwab gets its allocation from GS, the company is a little more stringent with its rules.</p>
<p>Dadx, thanks for the post.</p>
<p>
I thought all the IPO shares were in everyone’s account before trading opens.</p>
<p>
</p>
<p>Not exactly. Pricing (and final sizing) happens after the close on the day of pricing, which is the day before trading commences. The price can change, but you can also change the size of the deal at the last minute, in terms of number of shares (although typically this is not desirable to do).</p>
<p>Settlement is three days, I believe. And you aren’t actually committed to buy the stock until a prospectus is delivered in the case of IPOs.</p>
<p>Ok… But the prospectus is available in advance. </p>
<p>And changing the size of an offering is different than changing somebody’s allocation.</p>
<p>I dont remember ever having my allocation changed after the stock was trading. </p>
<p>Dadx, are you seeing individuals or firms allocatiions change after the ipo has started trading? </p>
<p>A friend has been trading ipos and secondaries quite a bit. He does say a few times his allocations were changed after the opening. If the allocation change was in his favor, great. If the change was a negative, the broker said he would make it up to him. One firm did try and cut his allocation from 10,000 shares to 2,000 shares after the stock had risen 4 points and 3 days had passed. My friend said, “lets call Finra”. He kept the 10,000 shares. (That might have been a secondary). </p>
<p>Anyway, I was in his office for 5 years and never saw an allocation change. </p>
<p>Dadx, are you talking about actual allocation changes? It is a big world oit there so maybe you have seen different things.</p>
<p>After the pricing of an ipo, you have the opportunity to change how many shares you want to purchase. A small window of time.</p>