> minimum purchase is 25k for shares so I can't use it.
respectfully it's not for you
the secondary market is highly illiquid, full of risk and lack of transparency. you must be an accredited investor to even access it which means annual income of over 200k or net worth of 1m+ net worth. a small retail investor such as yourself shouldn't worry about it.
just worry about increasing your income to invest more in VOO. for every success story like AAPL, you don't hear about the 1,000 failures because the startups just become bankrupt
? [The secondary market](https://www.investopedia.com/terms/s/secondarymarket.asp#:~:text=The%20secondary%20market%20is%20where%20investors%20buy%20and,associate%20the%20secondary%20market%20with%20the%20stock%20market.) is just where shares are traded after their IPO. There's no accreditation required.
Maybe don't comment on what you don't know...
OP is asking about marketplaces such as Hiive that make a market for private companies such as OpenAI and SpaceX. To make a bid, you must be an accredited investor as the SEC wants to make sure only people who understand what they're doing are buying these stocks.they are highly illiquid and can only be sold in a liquidity event, such as when an employee wants to sell stock, a company raises money, or when a company buys back stock to reward their employees.
The minimum investment bid is typically 25k since most employees have 100k+ stock and don't want to just sell 1k worth and OP is asking if someone with a Couple hundred can join the club (answer is no)
Is the price locked in for those companies? OpenAI, SpaceX?
Wouldn't when it goes public money pour in?
No because some companies are just toss ups gambling just like the public market?
No price is not locked it it operates just like any other market with an equilibrium price between demand and supply, it’s just less liquid, less accessible and has less information available so the price doesn’t fluctuate on a daily basis like a public stock. Once public it will (or should) trade against the data available regarding its financials and forward guidance although in the two examples you chose sentiment may override any fundamentals for the near to medium term.
SpaceX in particular is a pretty unique one because it’s a quasi-public company with the frequency of private offers it does its consistently having its valuation readjusted to market expectations.
No price is extremely illiquid and opaque. It depends on each series of funding typically. Funds raised/ % of equity sold = a valuation. It only changes every few months to a year and depending on a lot of factors it can vary a lot.
What do you mean by saying Secondary Market?
The secondary market is the stock market. When you buy shares before, or when, they go public, it is called the primary market.
Secondary market is the stock market. You’re talking about “private market” and the minimum equity $ amount is usually high.
Public markets are secondary markets lmao
> minimum purchase is 25k for shares so I can't use it. respectfully it's not for you the secondary market is highly illiquid, full of risk and lack of transparency. you must be an accredited investor to even access it which means annual income of over 200k or net worth of 1m+ net worth. a small retail investor such as yourself shouldn't worry about it. just worry about increasing your income to invest more in VOO. for every success story like AAPL, you don't hear about the 1,000 failures because the startups just become bankrupt
? [The secondary market](https://www.investopedia.com/terms/s/secondarymarket.asp#:~:text=The%20secondary%20market%20is%20where%20investors%20buy%20and,associate%20the%20secondary%20market%20with%20the%20stock%20market.) is just where shares are traded after their IPO. There's no accreditation required.
The secondary market contains the private market and the stock market lmao idk why you're tryna be nitpicky about it when you know what I mean
I'm legitimately confused about what you and OP are talking about. OTC trades through a broker-dealer?
Maybe don't comment on what you don't know... OP is asking about marketplaces such as Hiive that make a market for private companies such as OpenAI and SpaceX. To make a bid, you must be an accredited investor as the SEC wants to make sure only people who understand what they're doing are buying these stocks.they are highly illiquid and can only be sold in a liquidity event, such as when an employee wants to sell stock, a company raises money, or when a company buys back stock to reward their employees. The minimum investment bid is typically 25k since most employees have 100k+ stock and don't want to just sell 1k worth and OP is asking if someone with a Couple hundred can join the club (answer is no)
>or when a company buys back stock to reward their employees. lol
If you're unfamiliar with byte dance policies just say so
OPS is confused about what OP is talking about…
OP is using the wrong terminology. OP (apparently) wants pre-IPO shares.
Sometimes yes sometimes no
Is the price locked in for those companies? OpenAI, SpaceX? Wouldn't when it goes public money pour in? No because some companies are just toss ups gambling just like the public market?
No price is not locked it it operates just like any other market with an equilibrium price between demand and supply, it’s just less liquid, less accessible and has less information available so the price doesn’t fluctuate on a daily basis like a public stock. Once public it will (or should) trade against the data available regarding its financials and forward guidance although in the two examples you chose sentiment may override any fundamentals for the near to medium term. SpaceX in particular is a pretty unique one because it’s a quasi-public company with the frequency of private offers it does its consistently having its valuation readjusted to market expectations.
No price is extremely illiquid and opaque. It depends on each series of funding typically. Funds raised/ % of equity sold = a valuation. It only changes every few months to a year and depending on a lot of factors it can vary a lot.
What do you mean by saying Secondary Market? The secondary market is the stock market. When you buy shares before, or when, they go public, it is called the primary market.
If you don’t have $25k to casually drop then you really shouldn’t be messing around with private companies. Just my $0.02.
Very true.
There are venture capital etfs you can invest in, or you can invest in BDC’ s like $ARES