Sunday, November 14, 2010

If I have a pretty good idea that a company will go public, how can I make money from this knowledge?

If I have a pretty good idea that a company will go public, how can I make money from this knowledge?
Company is a very reputable stable company in Germany. They will probably go public within one year.
Other - Business & Finance - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Well... unless you already have a bunch of money it's really hard to get in on an IPO (Initial public offering). Usually those IPOs are only made available to large investors. Those investors will start to carve off the pieces they have purchased then start selling them at a profit. Those of us who have little to spend have to wait until the stock has been passed through several hands, increasing the price along the way. I wish I had a better answer.
2 :
In the US, firm issue public equity through the use of underwriting firms. These firms acquire the stock and then sell it usually to large clients. I would suggest approaching the owners now and seeing if you can purchase part of the firm now and then hope the sale of public stock will provide you a gain. I also suggest that if you know this detail, others do as well.
3 :
Become a private investor in the company. Contact them. Make sure you have millions. They likely won't deal and spend time and energy for nickel and dimes.