The simple answer is to make money. The idea is to raise funds and have more liquidity or cash on hand. There’s also the prestige of being listed on a major stock exchange like the TSX, NYSE, or NASDAQ.
The company going public decides which exchange to list on. Exchanges offer different fee structures for a company to list with them. Stock exchanges, such as the TSX, NYSE, and NASDAQ, want the business of an IPO because it could lead to more trading and future business from other IPOs. The exchange benefits from the prestige of having a famous company listed.
Yes. You don’t have to be a current Questrade client to receive our bulletin.
Yes. You must have a self-directed account.
If the security complies with industry and Questrade guidelines for granting margin, then yes, you can borrow on margin to participate.
In Canada, documentation released to the public by a company is displayed on the SEDAR website at www.sedar.com Find financial statements and prospectus information here.
U.S. companies don’t typically file the documentation necessary to allow them to market a new issue in Canada. Therefore, most U.S. IPOs are not available to Canadian residents.
Companies filing IPOs in Canada must file in each province to solicit interest from clients living in all provinces and territories. For example, if a company does not file a prospectus in Quebec (this sometimes happens), our trade desk won’t be able to accept orders from Quebec residents.
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You need a self-directed account to buy shares as part of an IPO or secondary issue. Join us by opening an account.