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The Shocking Truth of IPOs

The entire IPO process is a completely rigged system.

It’s designed to enrich a company’s founders, early investors, employees, and of course, the Wall Street bankers.

Average folks – like you and me – haven’t had a chance.

That is, until RIGHT NOW. Because using this simple loophole, you CAN invest in America’s most promising private companies. And you can start immediately.

That’s why I’m hosting a LIVE briefing tomorrow. Click here to discover HOW to invest in private companies – BEFORE they go public.

It’s 100% free to attend – just confirm your spot.

The next tech stock IPO could go LIVE by April 27.

The Wall Street Journal is reporting a new big data company will be valued at $1.7 billion… and shares will be priced between $12 – $14.

But I don’t recommend rushing out to BUY shares in the open market.

A far better plan is to buy PRIVATE SHARES right now – before the IPO shares start trading.

Tomorrow, I’ll show you exactly how this simple strategy works.

Have you missed out on big IPOs from Amazon, Google, Facebook, and Snap? If so, be sure to access this urgent research:

Click here to RSVP for tomorrow’s LIVE event.

Now that you’re confirmed, let’s get right into today’s Question & Answer Interview.

Question: Why aren’t more companies – like Airbnb and Uber – going public?

Ian: There are MANY reasons. The primary reason is that the private markets provide ample funding for companies.

In the late 1990s – during the dot-com boom – companies would IPO after raising $20 or $50 million. Today, many top tech companies raise hundreds of millions before going public.

For example, Uber raised $12.9 billion from private investors. Airbnb landed $3.3 billion in financing. And all of that is from the PRIVATE MARKETS.

There has been little incentive for these companies to IPO. Since they can raise huge amounts of cash privately, the CEOs have decided to avoid the headache and scrutiny that goes along with being a public company.

Question: I tried to buy shares in the SNAP IPO. But my broker didn’t let me buy shares. Why can’t I get access to this tech stock IPO?

Ian: This is super common. And it’s a sign of the rigged system that’s set up to keep 99% of individuals OUT of IPOs. So here is how it works:

Morgan Stanley, Goldman Sachs, JPMorgan and Deutsche Bank were the major investment banks that were “underwriting” the Snap Initial Public Offering. Unless you had an account at one of those firms, you didn’t have a chance of getting shares in this tech stock IPO.

Even clients at those firms weren’t guaranteed shares. In fact, it was ONLY the well-connected (rich) clients that were able to buy shares at the IPO price. That’s because these investment banks like to reward their best clients with special things like IPO shares.

So, unless you are a hedge fund manager of have a multi-million-dollar account, you won’t get allocated IPO shares.

That’s why this PRE-IPO STRATEGY is so attractive for folks who have been shut out of these lucrative deals.

Question: Do you recommend buying shares of recent IPOs?

Ian: No. I do NOT recommend going out and buying shares of an IPO as soon as it starts trading.

That can be a big mistake. Why? Because the very nature of IPOs is that they are super volatile. On the day a stock goes public, there tends to be lots of hype.

CNBC runs what’s essentially a 3-hour infomercial for the company. The CEO rings the opening bell at the stock exchange. The Wall Street Journal and Investor’s Business Daily run cover stories. It’s all hypedesigned to get people excited about a new stock, so they rush into the market and buy shares.

Consider what happened with Snap (NYSE: SNAP). The IPO priced at $17. Shares opened up at $24. People who got the IPO shares were sitting on a nice overnight profit of 41%.

Many investors who didn’t get IPO shares instead rushed into the market and bought the stock on the opening day. Snap traded 217 million shares – or about 20% of its total shares outstanding.

Shares continued rising – reaching a high of $29.44 the day AFTER the IPO.

Ever since, it’s gone downhill. The only investors who made money trading this stock were those who bought at the open and sold their shares within the next two days.

To make that call, you have to be an incredibly talented market timer, or very lucky. I know that I’m neither of those two things.

Question: What are the rules related to investing in private companies?

Ian: Typically, only accredited investors are allowed to invest in private companies.

What’s an accredited investor? Someone who has $200,000 in annual income (or $300,000 if filing tax returns with a spouse). Or $1 million in liquid net assets.

Unfortunately, that restriction locks out 97% of investors.

That’s why I’ve spent a couple years researching Silicon Valley, venture capital investments and private equity.

What I discovered was a secret and 100% legal loophole.

It allows regular investors to completely avoid the accreditation requirement. And it makes investing in private tech companies surprisingly simple.

Tomorrow, you’ll discover everything you need to know.

Just click here to RSVP for my live event IPO training right now.

The next $1.7 billion tech stock IPO could happen by April 27.

Right now, you can still grab pre-IPO shares. But time is of the essence.

My LIVE webinar starts tomorrow at 12pm Eastern / 9am Pacific.

Confirm your spot right here, right now.

 

Good Investing,
Ian Wyatt

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