If you were around when Google shook the IPO world you would know back then it was quite the advantage to have an E*Trade account. The Google IPO went for $85.00 and is now at $612. Just owning a few shares would have made you a happy investor. It is not everyday that the average Joe gets a chance at buying the initial public offering of a big company so why not at least give it a try. Their is one difference with the Facebook and Google IPO. The Google IPO was more of an auction listing and this Facebook IPO seems to have a limit or maximum amount you will purchase it for. They give you a range and you decide. It will most likely be set at a price of $35 next week when it goes live. Another difference is the minimum amount. Google did not have one and Facebook asks for a minimum amount of 50 shares. Basically that means you better have around $1,750 to begin to play this game on the stock market.
This is an aggressive growth investment so people such as Warren Buffett will not be on this bandwagon. It is a huge risk and there are lots of naysayers on this upcoming IPO. It is hard to say if it will be successful or not in the long term but I can guarantee in the short-term it looks to have a big following and lots of likes.
Signing up for this IPO through E*Trade is not exactly what you would imagine. You need to answer a few questions first and you can’t answer them like a beginner. One of the questions to look out for from the SEC is “Of the total amount of your investable assets, what portion will this investment represent?” If you answer more than 50% I doubt you be accepted in this IPO. It will also ask you “Given the lenth of your trading experience and the frequency of your trades, how would you consider the extent of your overall investment experience and knowledge?” I answered Good and was disqualified during the Google IPO days. Or maybe I answered Limited but the answer is most likely Excellent. They are just watching out for you as an individual investor not to get yourself caught up in something too big for your wallet or your mortgage.
Here is a glance of some of the questions asked from the SEC on Etarde’s IPO center: