Money Forum World

D Jordan · Joined: 08 Nov 2007 Posts: 2133

How do you purchase stocks? I have never done so before and I'm interested in the Lululemon IPO.?
lululemon Athletica Inc. is holding an inital public offering and I'd like to purchase a couple stocks. Can anybody just purchase stocks or do you have to see a financial consultant to set up a portfolio? I'm totally ignorant in the world of finance and markets. Any help could be great. thanks.

Omar · Joined: 08 Nov 2007 Posts: 2123

I could propose that since you're starting out, you may want to visit a brokerage where you may be able to really talk face to face with a broker. Its possible to set up an online account that could charge less for trades, but youre going to need some education about how investing works. Go with a firm whose name you recognize, and think about this initial investment that you're making a learning exercise. if you profit from these shares or not, you may be able to profit from learning about investments by purchasing and tracking them.and talking to your broker.

Later, when you are aware of more, you may be able to invest online with a discount broker.

Issac Lindsay · Joined: 08 Nov 2007 Posts: 2082

You do need a broker, cheapest way nowdays are online brokers like Ameritrade, and you can not purchase stock in an IPO till it starts trading on the secondary market, i.e. an exchange, Nasdaq, NYSE, Amex or an international one, Like London or so. Im just guessing you're in the US. If its a crappy company on occasion they trade OTC over the counter I dont know much about those because they're more high risk.
But it really depends on your savings and how much you're wanting to risk. you may want to really invest in more conventional ways to save for your future, i.e. a diversified portfolio.

Denver · Joined: 08 Nov 2007 Posts: 2173

You shouldn't purchase stock in an IPO if this is your 1st time. IPOs are high risk. typically it's the people on the inside of the company that really make money on an IPO.

You should do some reading on Finance. there's some good info there to get you started.

CWooten · Joined: 08 Nov 2007 Posts: 2034

If you dont know about investments, then purchase some Treasury bonds/bills.

Read a bit about corporate bonds, do some reasearch, then get into corporates.

Read about market trends, and purchase some index ETFs like DIA, SPY or QQQQ.

Then you may be able to learn about individual stock picking.

IPOs are high risk for the pros, so dont jump in the water, if you cant swim. Youll drown.