Can I buy any stock which I prefer anytime??

Question

I am planning to invest in Share Market.When a company releases an IPO people would buy that.But after the IPO period is over,Is there a chance that we can buy that stock??? If anyone can guide me how to buy and sell stocks It would be a great help..Although I have went through the how to's of stock market,I am not clear yet..Plz help..

Answer 1

After the IPO, the stock is publicly traded and that is your chance to buy it if you so desire.  Some IPOs do fantastically well, but many eventually fall by the wayside.  In times of bull markets IPOs tend to perform very well in general.  In times of bear markets, watch out. IPOs are not in general seasoned companies so there is great risk involved in many of them.  One must be very particular.  

Interestingly, I just did a study correlating stock performance to return on equity.    58% of those companies with a 20% or better annual return over the past 19 years currently have an ROE of 15% or better.  But and there is a big but of the of the 1800 companies with a ROE of 15% or better only 227 gave a return of better than 20% annually during the previous 10 years.

Answer 2

Sure, if its a public company.  Some companies are so small that its hard to buy any shares, but aside from those considerations you can pretty much by any public company that is listed on an exchange.

Answer 3

Yes you can buy the stock. An IPO is an initial public offering which means the company has made its stock available to the public to buy and/or sell.

When the stock is selling as an IPO is being brought to the public by the underwriter through a selling syndicate, once the shares are sold, and the company receives its money from the underwriting the Underwriter closes the syndicate and the stock now is free to be traded in the open market.

Any broker/dealer will be able to obtain a current market quote for the  stock, which means the can find out what other buyers are willing to pay for the stock (the bid price) and what sellers are willing to sell the stock for (the asking price).  

You can use either the services of a stock broker or on-line with any brokerage firm you choose.  Since the stock is trading publically, you must use a brokerage firm.   It may be easier for you just to stop in and visit one of a brokerage firm in your area.  Their advice is free, but like all firms, they will charge you a commission if you do buy through them.