5 New Features: IPOs & Fixed-Income New Issues

TD Ameritrade reveals five new features in relation to their IPO and fixed-income new-issue offerings.

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This past fall we told you that good things were on the way in relation to our Initial Public Offerings (IPOs) and fixed-income new-issue offerings, and now they have officially arrived. Without further ado, here is a breakdown of the new capabilities.

1. See what IPOs are available online.

Want to take a look at the equity IPOs TD Ameritrade is participating in? Now you can! This allows you to track what's available online and react quickly to take advantage of IPO investment opportunities, if you're eligible.

FIGURE 1: WHAT'S AVAILABLE.

Visit Trade > IPOs to browse the equity IPOs TD Ameritrade is participating in. Track what's available online and react quickly to take advantage of IPO investment opportunities, if you are eligible.

2. See what fixed-income new-issue offerings are available online.

As with IPOs, you'll find available offerings for fixed-income new issues all in one place, on Trade > Fixed-Income New Issues. You can read the preliminary prospectuses or offering memorandums and see which new issues may be in alignment with your investment objectives.

You can also sign up to receive an email notification when a new issue available through TD Ameritrade is available. To sign up, log in to your account at tdameritrade.com and go to Research & Ideas > Alerts > New Issue Alerts. From there you can specify the types of alerts you want to receive and the email account you want the alerts sent to.

FIGURE 2: FIXED-INCOME NEW-ISSUE U.S. CORPORATES.

Visit Trade > Fixed-Income New Issues to check out all available offerings in just one place. This allows you to view preliminary prospectuses or offering memorandums.

3. Enter COBs without having to pick up the phone.

For both IPOs and fixed-income new issues you can enter conditional offers to buy (COBs) right from the site, if you are eligible. You'll no longer have to call us.

Please note that even if you are eligible, placing a COB does not guarantee an allocation of shares and you must be willing to accept a fill, a partial fill, or no fill at all on your order.

FIGURE 3: NO PHONE NECESSARY.

If eligible, you no longer have to pick up the phone to enter COBs for both IPOs and fixed-income new issues. You can enter them right from the site.

4. Track the status of COBs and manage shares online.

Once you've placed a COB for an IPO or fixed-income new issue, you can track the offer on the "Order Status" page and see allocated shares on the "Positions" page.

  • For IPOs, when the final price has been set, you'll see an update on Trade > Order Status. If you are allocated shares, they will be listed on My Account > Positions.
  • For fixed-income new issues, price changes will be viewable on Trade > Order Status. If you are allocated shares, they will be listed on My Account > Positions.

5. Learn more about IPOs.

Visit our new tab "About IPOs" to learn how the IPO process works, who is eligible to participate, and more. To take a look, log in to your account at tdameritrade.com and go to Trade > IPOs > About IPOs.

Be sure to read the prospectus before investing in an IPO. After the prospectus has been filed, but before the offering is declared effective, offers to sell the securities can be made using a preliminary prospectus or "red herring," which generally indicates a range of likely prices for the issue. You can access the preliminary prospectus by clicking the PDF icon next to the name of the offering you are interested in.

Before investing in an initial public offering, be sure that you are fully aware of the risks involved with this type of investing. There are a variety of risk factors typically associated with investing in new issue securities, any one of which may have a material and adverse effect on the price of the issuer’s common stock. For a review of some of the more significant factors and special risks related to IPOs, we urge you to read our Risk Disclosure Statement.

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