Rules Regarding Ipo On Manage Accounts

Rules regarding ipo on manage accounts

First, you'll need to meet at least one of the following eligibility requirements for participating in an IPO:

  • Either $100,000 or $500,000 in household assets (depending on the IPO; this amount excludes institutional or annuity assets, such as 401(k), 403(b), and annuity contracts),
  • 36+ trades/year, or
  • You're a Premium or Private Client Group customer.

If you meet the eligibility requirements, you need to sign up for Fidelity Alerts so we can keep you updated on the offering.

Rules regarding ipo on manage accounts

Your next step is to read the offering’s prospectus (this document is from the issuer and it contains descriptions of the business and other pertinent details). You can access the prospectus from the Initial Public Offerings (IPOs) page. Under the Current Offerings Calendar, find the offering you want to participate in, and then select Prospectus and Download.

Note: In addition to the eligibility requirements, you'll also need to answer a series of qualifying questions before you can participate in the IPO.

FINRA rules prohibit "restricted persons" (certain persons associated with the financial services industry) from participating in the purchase of new issue offerings.

If you decide to participate, next to the desired offering, select Participate.

Rules regarding ipo on manage accounts

You'll see a page asking you to select the account you want to use; choose your account and then select Enter New Indication of Interest or Bid, and Submit. The Select Offering page appears, then next to the IPO, select Participate.

Here’s where you'll need to complete the qualifying questions by answering yes or no.

Rules regarding ipo on manage accounts

After you answer the questions, you'll be asked to enter an indication of interest (IOI). To complete your participation, review your selection and then Submit.

Note: You must have at least $2,000 in cash or fully paid securities in the account you use to enter an indication of interest.

The indication of interest tells us the maximum number of shares you’re interested in purchasing.

Investing in Initial Public Offerings (IPOs)

IOIs must be for a minimum of 100 shares. The IOI window is open for several days, so there is generally a delay between when the IOI is placed, when the final IPO price is determined, and finally, when allocations (the amount of stock distributed) are received.

Rules regarding ipo on manage accounts