What is an IPO?
Most companies start private, meaning their shares are held by founders, employees, and early investors and aren't available to the public.
An IPO (Initial Public Offering) is when a private company offers shares to the public for the first time. Through CUSP Wealth, you can request shares at the IPO offer price, before they begin trading.
Where you come in: Requesting shares through CUSP Wealth lets you participate in the initial IPO at the offer price, rather than buying after the stock starts trading. However, the final price and your allocation aren't guaranteed, and once listed, the stock price can rise or fall.
Things to understand up front
A request is not a purchase. When you tap Request shares, you’re applying to participate in the IPO, not making a guaranteed purchase.
Your allocation may be smaller than requested, or you may receive none at all, as shares may be limited.
The final IPO price is not set yet. It is determined closer to the listing date.
Your cash is reserved while you wait. Any unused amount is automatically returned.
You choose an amount, not a price. The price range shown before an IPO is only an estimate.
The final IPO price determines how many shares you receive. You will never be charged more than the amount you requested.
Shares are allocated in whole shares only. You may receive your full allocation, part of it, or none. Any unused funds are automatically returned.
Requesting shares requires a $10 monthly subscription. There is no fee per request, and it does not renew automatically.
On listing day, your allocated shares appear in your portfolio, usually a few hours before trading opens. Once trading starts, you can see the live price and choose to hold or sell.
Understanding IPO Risks
IPO shares can be volatile in their first days and can fall below the offer price.
Past IPO performance is not a guide to future results.
Only invest what you can afford to lose, and read the prospectus first.
FAQ
Will I definitely get the shares I request?
Will I definitely get the shares I request?
No. You may receive all, some, or none, depending on demand.
What if the final price is above the range?
What if the final price is above the range?
The price range shown before an IPO is only an estimate. The final IPO price may be higher, lower, or within the indicated range. Your amount stays the same. A higher price just means fewer whole shares.
Why did I receive fewer shares than my estimate showed?
Why did I receive fewer shares than my estimate showed?
The estimate assumes the top of the range and full allocation. Both can change.
Can I request more than the maximum by placing two requests?
Can I request more than the maximum by placing two requests?
No. Limits apply per person, per IPO.