In 2021, the number of initial public offerings (IPOs) jumped. By the third quarter of the year, 1,635 companies had registered worldwide, raising a total of $ 330.7 billion. Among them, several large companies such as Roblox, Duolingo, Rivian Automotive.
On the stock market, venture capitalists occasionally invest in IPOs. This is an opportunity to take advantage of the strong growth potential of companies before they are integrated into markets. Investing in unlisted companies is not just for professionals. As an individual, it is also possible to participate in the last round of private financing before they are floated on the stock market. For this, there are trusted solutions that make it easy to invest.
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This is the case of Freedom24, an online trading platform. The latter was created by Freedom Finance, a financial services company itself a subsidiary of the listed company Freedom Holding Corp (capitalization of more than $ 4 billion).
Subscribe to an IPO in a secure way
Freedom Finance is the only brokerage firm based in the European Union to be listed on Nasdaq, the major US equity market. This advantage allows it to make investment in IPOs of large American and European companies accessible from the Freedom24 platform.
From an online account, it is possible to access more than 1,000,000 trading instruments such as stocks, ETFs (Exchange Traded Funds), bonds, futures and options on the largest American, European and Asian stock exchanges.
On the security side, Freedom Finance is reassuring in more than one way. The company is regulated by three major regulators: the US Securities and Exchange Commission (SEC), the Cyprus Securities and Exchange Commission (CySEC) and the German Federal Financial Supervisory Authority (BaFin). She is also a member of the Association for Financial Markets in Europe (AFME), which is the voice of major European markets.
At the same time, it operates in accordance with the rules of MiFID II, a directive on financial markets which ensures a high level of investor protection.
An easy-to-use investment platform
The Freedom24 platform is designed in such a way that it can be used by those new to the world of stock market investing. For this, only a few steps are required to open a trading account. First, you have to complete your economic profile, choose the tariff plan that best matches your planned investments and objectives, then fill in the data essential to any creation of a traditional account. You will then need to confirm your identity using documents and supporting documents and then sign the contract electrically. The process is quick, it takes between 2 and 15 minutes.
Once registered, it is possible to easily access analyzes and resources to help you better understand where to start your investments. Users can practice trading on the platform as much as they want through demonstrations. It’s also helpful to watch educational webinars hosted by the Freedom Finance team, and to check out the company’s InvestIdeas blog, which includes financial recommendations and forecasts. These tools make it possible to prepare for future investments that will be made.
If there is any question, new traders can turn to Freedom24 customer service. The latter is always ready to respond to their requests for advice.
Once you are ready to make your first IPO, you must ensure that your investment account is credited with at least $ 2,000. Then all you have to do is submit a request to participate in your member area to one of the major upcoming IPOs, such as Starlink, Discord, Reddit, TikTok, Instacart, Stripe or many others scheduled for 2022! A request to purchase securities must then be made to the issuer for the desired amount.
A 93-day blackout period followed. During this period, it is only possible to follow the current value of its shares. Once the IPO is finalized, the user can choose to sell or keep their shares in an investment portfolio. Subscribers can store their profits in their D savings account, which offers a fixed return of 3% per year.
The number of shares purchased by each client in an IPO varies in supply and demand. The allocation of shares thereof, that is to say the amount of shares purchased during the IPO divided by the amount of the order, is calculated individually according to the rating of each client. The latter is based on the liquidity of the portfolio, the trading activity and the regularity of a subscriber’s participation in IPOs.
This rating is calculated and updated automatically. In this sense, it is essential to implement the necessary measures to increase your rating and thus obtain a greater allocation of shares during future IPOs. In particular, it is recommended to constitute a diversified portfolio of liquid securities before each IPO.
In this sense, Freedom24 provides a better understanding of the world of trading thanks to its various resources and to invest in the best IPOs simply. Before getting started, it should be kept in mind that investments in stocks and other instruments can lead to a loss of capital.