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Health & Fitness

An IPO for all

Tis the season, after all.

That phrase is usually used to describe the spreading of holiday cheer, gifts, and other festivities, and not usually the Initial Public Offering (IPO) process. Facebook, Twitter, and Hilton have been three of the biggest IPOs that have taken place within the last 12-18 months, but there has been a recurring theme/complaint about the IPO process regarding these firms, and the overall IPO market overall.

Many retail investors (you and I) find themselves left out of the initial purchase IPO stocks. Let’s use an example: Twitter and Pot-Belly (a fast food chain) both went public this year, and both had substantial “pops” in stock price on the first day of trading. While this makes for exciting TV and generates plenty of material for the financial media, that does not necessarily benefit the individual retail investors.

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San Francisco-based Loyal3 is looking to change that process. By providing a platform that will allow individual investors to purchase small amounts of stock from participating firms, this firm and its platform are allowing smaller investors to participate in the entire IPO process. While this does generate additional costs for the firm, the firm could build such costs into loyalty or “preferred” customer programs. AMC was persuaded by the logic of this, and is planning to utilize the services of Loyal3 in its pending IPO.

Yes that AMC, of Walking Dead and Breaking Bad acclaim.

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