How to Buy IPO Shares as a Regular Investor

When a big private company announces it's going public, the same question comes up: can a regular investor get in? Sometimes, yes. But for most people, "buying the IPO" really means buying shares on the first day of trading, at whatever price the market sets, and that is a very different bet.

Checked October 1, 2026. This guide explains how IPOs work; it doesn't recommend any company.

Two ways to buy an IPO

Getting shares at the IPO price

Traditionally, IPO shares went almost entirely to big institutions and wealthy clients of the banks running the deal. A few brokers now set aside part of some IPOs for everyday customers:

• Robinhood IPO Access lets eligible customers request shares at the IPO price in the app.
• SoFi offers IPO investing on some deals with lower minimums.
• Some full-service brokers, such as Fidelity and E*TRADE, offer IPO access to clients who meet account or trading requirements.

Each deal is different. You usually submit a request a few days before the listing, saying the most you're willing to pay. If demand is high, you may get only part of what you asked for, or nothing at all. Some brokers also limit your future IPO access if you sell your allocation within a short period, often 30 days.

Buying on the first day of trading

Once the IPO is priced, the shares start trading on an exchange, usually late morning on listing day. Any brokerage account can buy them from then on.

• Use a limit order, never a market order. First-day prices can jump or fall by large amounts within minutes. A limit order sets the most you'll pay. See market vs limit orders.
• Expect volatility. Popular IPOs often open far above the offer price, then swing hard for weeks.
• Buy a small amount. If you want to own a new company, you can build a position slowly once the price settles.

The risks most people miss

1. The first-day pop goes to insiders and early buyers. By the time the public can trade, a lot of the easy gain has already happened.
2. Many IPOs underperform over the next few years. Long-running research by Jay Ritter at the University of Florida shows that, on average, newly public companies have lagged the broader market over the three years after listing.
3. Lock-up expiry. Employees and early investors usually can't sell for 90 to 180 days after the IPO. When that lock-up ends, a wave of selling can push the price down.
4. Less history. A new public company has only a few years of audited results for you to judge. Read the prospectus (the S-1 filing on the SEC's website), especially the risk factors section.

A simpler way to get exposure

If a company is a genuinely big IPO, it will usually be added to broad index funds within months to a year. Holding a total-market or S&P 500 index fund means you'll own it eventually, alongside hundreds of other companies, without betting on one listing. See the 3-fund portfolio and our 2026 IPO watchlist.

FAQ

Can anyone buy IPO stock? Anyone with a brokerage account can buy once the stock starts trading. Getting shares at the offer price depends on your broker offering access to that deal, and on demand.

What time does an IPO start trading? Usually late morning on listing day, once the exchange has matched enough buy and sell orders to set an opening price. It can be later for very popular deals.

Is buying an IPO a good idea for beginners? It's a high-risk, single-company bet. If you do it, keep it to a small part of your money and use limit orders.

What is an IPO lock-up period? A period, usually 90 to 180 days, when insiders and early investors agree not to sell their shares. Prices sometimes drop when it ends.