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How do I buy from stocks from an IPO?

J. asked:


The card company VISA is going to go public, I read that they have started the process in june. and the price will be between 37-42 $ How do I buy this stock when they are first available? before being traded? Can I do it directly or do I need to open an account with something like scottrade or e-trade etc…

Season Defrance
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  1. bluelf says:

    You have to go to a stock broker to be able to buy and sell stocks. They are licensed to trade in stocks.

  2. Terry W says:

    you can’t buy IPO directly but only on the secondary markets.

    usually investment banks buy up the ipo’s and their sell side of the firm will sell it and you will have to buy it through a broker.

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