One of the glorious days for a corporation is the day it begins trading on the New York Stock Exchange or the NASDAQ. All the years of private financing and struggle to succeed come to a high point---and a big payday for original founders hopefully.
The essential facts of the IPO, or Initial Public Offering can be found in a google search. However, on an initial offering, there is no specific commission charge listed----it is paid by the offeror and the customer sometimes thinks it is a special deal. Not so.
Because of the lack of history on the new company, the stock exchange has rules that a prospectus must be prepared that details all the risks to the investor of purchase. One might think that this would be pretty educational....reading all the prospectuses and such. It is. However, one could spend all day reading them. The brokerage business is 99.99 about selling and .01% about analysis and reflection. I always loved reading the tech stocks prospectuses since there was usually some interesting stuff revealed that was heretofore not public knowledge.
The group of brokerage firms that have bid to handle the IPO are called the "syndicate." I have always loved that little info bit. There are so many ways the word syndicate can be used. In fact, if there is a really, really hot stock, you as a customer will probably never get your hands on any of that stock...cause it has been secured by the "syndicate", s slightly different meaning. More on that later.
Some reflective words on the art of trading....in business, stocks, or ...anything.....and in the spirit of the Book "The Tao Jones Averages," why whole brain analysis is critical whether in the rush of the bull, or the panic of the bust. This blog is an archive blog for prepublication of a small booklet.
