1. Your Questions About Stocks To Buy
Sandra asks…
Stocks. After the underwriter buys the ipo, how does the issuing
company buy stocks back?
If i got this straight the underwriters own the stock not them. There involvement in the stock
ends when the underwriters purchased them. If you were subject to a stock buy-back who did
the request come from? The issuing company or the underwriter? Also...when individual
borrows said stock from broker, are you borrowing a piece of the company or are you borrowing
a said piece of paper from brokerage?
Steve Winston answers:
Not quite - the underwriters do buy the stock from the company, but the goal is not to hold the
stock but to sell the stock to investors. IN a successful IPO, at the end, the underwriters own no
stock (well, at least no stock that they didn't want to hold).
In a stock buy-back, it is the company making the offer to buy-back the stock. This is done when
the company either wants to go private (in which case it buys back 100% of outstanding stock)
or when the company wants to decrease the amount of stock on the open market (for any of a
number of reasons).
In the last case, you are talking a short sale. In this case, the seller borrows the stock from the
1/3

2. broker, who then borrows the stock from the accounts of other people who have trading
accounts with the broker. Since a share of stock is a share of the company, in essence you are
borrowing a piece of the company, except you never own that piece of the company so in
reality, you are really taking a loan from another investor which you must pay back.
James asks…
What are some good buy opportunities for stocks during this
recession?
Given that a lot of stocks are down at the moment, what are some good buy opportunities? I
don't want to buy stock that will keep going down and be worthless, but if there are some good
buys now that are safe I'd like to invest in some. I can afford to wait a while if it means a good
turnaround.
Steve Winston answers:
If you want cheap and safe stock and invest on long term i suggest you should buy C, and BAC
because government will never let these big bank fail
2/3

3. Powered by Yahoo! Answers
Read More… http://buystocksmakemoney.com
3/3
Powered by TCPDF (www.tcpdf.org)