IPOs at Stockpile

How Does It Work?

At Stockpile, you can invest in stocks the day they go public. These trades are the same as any other stock purchase. Your order will go through at the end of the trading day, and you will receive the end-of-day market price.

Am I participating in the IPO?

Please keep in mind that any trade made with Stockpile on the day of an IPO is not a private placement. You’re not participating in the IPO and will not receive the IPO price, which is restricted mostly to insiders. But you can purchase fractional shares of a stock the same day it goes public, regardless of the share price.

When Will My Trade Execute?

Your trade will go through at the close of the market, at whatever the closing price is. The price you receive may be higher or lower than the IPO price. You will see the stock actively trading in your account when the market opens the next business day. Newly public stocks are often more volatile than mature stocks so your new stock may go up and down more than you’re used to seeing.

Canceling a Trade

If you paid for your trade with cash in your account and aren’t happy with the direction the stock price is heading, you can cancel your order before 3 pm ET. Credit/debit/PayPal purchases are non-refundable — if you cancel before 3 pm, you’ll receive a credit you can apply to a different stock. You’ll find the credit in the Gift Card section of your account.

If you have any questions, please contact us at support@stockpile.com. We’re here to help!

Thank you for being a Stockpile customer! Happy investing 🙌

 

What is the Nasdaq?

Cheat Sheet:

  • Stands for National Association of Securities Dealer Automated Quotations.
  • Composed of all the stocks on the Nasdaq market – more than 5,000.
  • It is the main benchmark index for U.S. technology stocks.
  • Largest electronic equities exchange in the U.S.

We have already touched on two of the major indexes: the S&P 500 and the Dow Jones Industrial Average. Now it is time to tackle another popular index: the Nasdaq. The Nasdaq is short for the National Association of Securities Dealer Automated Quotations, which doesn’t exactly roll off the tongue. So they shortened it to NASDAQ. 

Read more …

What is a dividend?

Cheat Sheet:

  • A dividend is cold, hard cash some companies pay out to their shareholders.
  • Mature companies that make steady profits are more likely to pay dividends.

The way most people think of making money in the stock market is by buying low and selling high. For certain stocks, you can also make money just by holding the stock. These are called dividend stocks.

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Dividend Yield

Cheat Sheet:

  • Dividend yield tells you how generous a company’s dividend is.  You can use it to comparison shop.
  • The higher the company’s dividend yield, the more cash you’ll receive for every dollar you invest.
  • Older investors often use high dividend yield stocks as a steady source of income.

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BRAIN TEASER

You buy stock a day before the ex-date and sell it the day after the record date.  Who gets the dividend when it’s paid out a month later?

A.  The prior owner

B.  You

C.  The new owner

Answer

Dividend Reinvestment

Cheat Sheet:

  • Using a dividend to buy more of that stock is called “dividend reinvestment.”
  • When you do this, you end up with more shares of stock instead of cash.

If a company issues a cash dividend, it will normally show up as cold, hard cash in your brokerage account. At some brokerages, you can buy more stock with the dividend for free so that you own more shares instead of holding extra cash.

Read more …