<p>Do any of you buy IPOs stocks? Seems potentially very profitable, if researched company well.</p>
<p>Who determines the opening prices?</p>
<p>Also, I heard that the new company's brokerage firm has the first dibs on stocks; the members of the brokerage house gets the first round of picks. Is that true?</p>
<p>Has nothing to do with business school's. Why don't you go read a finance book about that. I personally think they suck. Yes it is true, there is priority over these shares.</p>
<p>Srry, I thought business grads could give me some insight. But thanks for the heads-up.</p>
<p>Idiot Walton. Dude this is a forum talking about Business school and here you ask ppl about IPO's...freakin ridiculous. </p>
<p>Why don't you go to yahoo finance or google finance and ask ppl about IPOs. To answer your question, yes brokerage firms who were the underwriters for the IPO company or other brokerage firms get first dibs on the share..so the price the first day it is publicly traded is much higher than the original IPO price.</p>