How To Buy Ipo

In my eyes, one of the best investment vehicles, besides options, is the IPO. How to buy IPO is simple and it is as easy as buying any other type of stock. Once you learn how to buy IPO you will be ahead of the investment pack and possibly into some major profits. In the article below I will show you how I have made literally thousands of percent with IPOs and in the end, you will know how to buy IPO.

The first step in this process is the obvious one- you need to find out which companies have filed for IPO. This can easily be done by either searching on Google for IPOs or by going right to the source, the SEC (Securities and Exchange Commission). With the SEC site, the best way to access this is by going to Google and type in the phrase "EDGAR SEC". This will bring you right to the website.

Every IPO must file a prospectus with the SEC and in this document you will find the holy grail of information. You are on the right track towards learning how to buy IPO once you read this document. In this document the specific things I look for are, "Use of Proceeds," "Underwriting" and earnings.

Together, these three components could add up to be very profitable for you, as they have for me. I will highlight each of these components so you know what to look for below:

Use of Proceeds: The IPO must state what it will be doing with the money raised from the offer. What I look for is "possible business acquisitions" and "research and development". This tells me the company is looking at expansion and expansion is good for stock valuation down the road.

Underwriting: This section shows exactly what underwriters will be managing the deal. I keep a list of underwriters on my desk that I feel are the best in the business and if I come across an underwriter not on my list, I bypass the IPO. IPO underwriters I look for are Goldman Sachs, JP Morgan, Morgan Stanley, Deutsche Bank and Credit Suisse. Having a strong underwriter almost ensures that the IPO will be managed and handled well and a well managed IPO could bring in huge profits.

Next is earnings. This is pretty much self explanatory. I like to look for strong and increasing earnings. This tells me how the IPO will perform in the future.

At this point, you very well will be ready to trade and the question, "How to trade IPO" can be answered by you.

By: Tim W Fields

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I've been investing in IPO's for over 10 years now and by no means is this simply a hobby, it's a business for me. Over the last 10 years, I've gained a lot of inside knowledge and made gains in the thousands of percent and I'm willing to share that knowledge with you for free. Download my free e-book here >>>>> www.trinityreports.com