IPO Access lets you buy shares at the IPO price as the stock becomes available to the general public. With our random allocation process, each customer’s eligible request has the same likelihood of receiving all, some, or none of the IPO shares they request. The number of shares you request doesn't change your chances of receiving an allocation.

We're invited by investment banks to participate in the distribution of IPO shares to the public. We're not an underwriter, so we don't work with the issuing company. Instead, investment banks allocate shares to us, and then we give our customers the chance to buy the shares we receive.

There are some regulatory requirements that identify industry professionals, who are generally restricted from participating in IPOs. For instance, if you’re employed by or associated with a broker-dealer or are a portfolio manager, or are an immediate family member of such a person and materially support or receive support from the person, you may be restricted from participation. For more information, see FINRA Rules 5130 and 5131. Also, check out How to sign up for IPO access for details.

KEEP IN MIND Retirement accounts, joint accounts, and managed accounts are not eligible to participate in IPO Access at this time. IPOs are considered speculative and risky investments, and may not be appropriate for every investor. Robinhood doesn’t make recommendations regarding any particular IPO. Learn more about the risks.

Because of how closed-end funds (CEFs) raise their initial capital, purchasing CEF IPO shares come with some unique risks, such as:

• Investment risk in generating cash through an IPO that will be invested according to the fund's strategy. Even well-planned strategies that invest almost all of the fund's capital at once could be poorly timed, negatively impacting the fund's long-term performance.
• CEF IPOs don’t require any historical data about their operating financials, management experience, or business strategy.

Follow the steps in How to request IPO shares.

We receive a limited number of shares for each IPO. We use the number of shares, customer demand, and other factors to determine how many shares you'll get. You may get the full number of shares you requested, a partial amount, or none at all.

Not all customers who request IPO shares will receive them. Market demand, similar to stocks, varies for every IPO. The higher the demand for each IPO, can decrease the likelihood of receiving the requested amount of shares or receiving shares at all. We’re only given a limited number of shares to allocate to customers for each IPO. So we can't guarantee each customer will receive the amount they requested, or any shares at all.

Issuing companies and their underwriters typically discourage flipping of shares. Underwriters may restrict Robinhood from participating in IPOs in the future if we allow the practice of flipping. Review the SEC's Investor Bulletin to learn more about flipping and investing in an IPO. You can sell the shares you received through IPO access at any point in time. However, if you sell IPO shares within 30 days of the IPO, it's considered flipping and you may be prevented from participating in IPO access for 60 days. This policy applies to all IPOs offered with IPO access.

No fees are added when investing in an IPO company. You simply pay for the shares you are allocated at the IPO price.

To make things fair, our model randomly selects who receives IPO shares from a pool of everyone who submitted a request (known as a conditional offer to buy). Each eligible person can enter a request for shares. Each customer’s eligible request has the same likelihood of receiving all, some, or none of the IPO shares they request. The number of shares you request doesn’t change your chances of receiving an allocation. For details, check out Why didn't I get the requested IPO shares?

If you've requested IPO shares, we'll let you know how many you can buy on the IPO date in the app or by email. We allocate shares generally after the market opens, but before the IPO issuer’s shares are trading on the open exchange.

The number of shares you request factors into how many you actually get, but it doesn’t affect the likelihood that you’ll get any allocation. You may get all, some, or none of the IPO shares you request. The amount you request lets us know how many shares you're interested in purchasing.

When a company goes public, its stock might not start trading until midday on its IPO date. This is because underwriters must ensure they've allocated all the sold IPO shares before the stock can begin trading in the secondary market.

The underwriter, working with the issuer, determines the list price. Once the stock is trading, the opening price is determined by what investors are willing to pay per share, which also determines the stock’s price moving forward.

After we finalize allocation amounts and deliver the shares to the applicable accounts, we will cancel any remaining pending orders. After your Conditional Offer to Buy is cancelled, any cash that was held for the order will then be returned to your buying power.

KEEP IN MIND Allocations may not be finalized immediately after the market opens. You may notice a slight delay between receiving the allocation information and having your final order updated accordingly.

Exchanges decide when they will start making options available. Options aren't available for at least 3 business days after a company goes public. Sometimes, it takes much longer (30-60 days) before a stock is eligible for options. Stock exchanges look at various factors when making that decision, including:

• Number of outstanding shares
• Number of shareholders
• Trading volume
• Stock price

We work with investment banks, acting in the role of underwriters, who invite Robinhood to be a selling group member and help distribute IPO shares to the public. That means we can only offer access to IPOs in which we're invited to participate. We're hoping to expand our partnerships to help our customers gain access to more IPOs. We'll send you updates as our IPO program grows.

Once a company files to go public, there's a quiet period. During the quiet period, we block news from the company’s stock detail page. Company information will be available in the app once the IPO is complete and shares are trading in the public markets.