Q&A: How Can I Buy Shares Before An IPO?

Q&A: How Can I Buy Shares Before An IPO?
Carl Hazeley

about 3 years ago1 min

Question from Daniel in Romania: How can I buy shares of a company before its initial public offering (IPO)?

Answer from lead analyst Carl: The answer would be pretty simple for venture capital or private equity firms, since they specialize in doing exactly that. But the closest you can get on your own is by becoming an angel investor who independently funds companies – typically startups – through personal connections or crowdfunding platforms. Of course, there’s no guarantee that those companies will even make it to IPO. There are a couple of other options too: if you have millions of dollars to invest, there are stock brokers that specialize in dealing pre-IPO shares. And if you don’t, some retail investor-focused brokers offer "grey markets", which let you speculate on where a company’s share price will end up going before it lists.

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