Skip to main content

IPO purchase opportunity is denied by the stock broker

Seattle, WA |

Hello,

I was trying to place a conditional purchase offer for an IPO. Charles Schwab i smy broker. As per the discussion I had with their associates, I met all the criteria to participate in this particular IPO purchase.

When I tried for placing a standing order from their website, it denied saying that I am not eligible and did not give any specific reason why I am not eligible.

I would like to consult an attorney as I strongly believe that they unfairly denied my purchase request.

+ Read More

Attorney answers 1

Posted

Dear Sir or Madam,

Do you have any damages? Has the stock started trading? Is it trading higher than the buy in price? Generally, for a breach of contract case, one has to "mitigate your damages." What that means is that you may have to purchase the stock after a reasonable period of time and sue based on the difference in price of where you could have bought in and where you did buy in. There is a lot of information that has not been provided.

Regards,

Andrew

Asker

Posted

Thank you for the response. Stock is not public yet. But my stock broker is denying my eligibility to purchase pre IPO shares without giving any specific reason for the denial. When I talked to their customer representatives, they told me that I met all the criteria for purchasing pre IPO stocks, but they have no idea why their website rejecting my request and they confirmed that they can not do anything about it. I really don't want to miss this opportunity, but I can not go with other brokers, as my liquid assets are linked with this broker (which is one of the criteria for buying pre IPO stocks) and I don't have enough time to move them to a different broker.

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer