My dad has an account with a large investing firm. For the first round, only certain people were "allowed" to buy FB stock. In most cases, you have to have had at least $250,000 in trades or already invested, for some firms, you needed $500,00. I find this practice appalling, as the middle class and students made FB what it is and few of them will get the first round at the discounted price.
My dad was sent a questionnaire by his broker to see what he was going to do with the stock IF he was allowed to buy it. He had enough trades and enough invested in the firm to be "selected" but he said having to be "chosen" by a questionnaire is very uncommon.
He said on the questionnaire that he was buying the stock for investment. BLAAAAT! WRONG! He was DENIED the stock, because they were looking only for those were buying the stock on speculation.
Now, I don't know a lot about stocks or investing. But, my dad said in most cases buying on speculation means you buy the stock with the hope that the stock's price will go down
and people will lose, and those who bought on speculation would "win" usually by selling it quickly as soon as the Unwashed Masses were allowed to buy it, thus dropping the price and screwing anyone who buys it later. People DO this, buy stocks with INTENTION of screwing other people. As my father refuses to buy on speculation, he was denied access to the stock.
This entire thing makes me ill. Only certain people are "allowed" to buy certain stocks and even those who have good trading histories can be denied if they are going to do the "wrong" thing with the stock.
Yet one more proof that this is not a fair system, and that the whole system is set up so the rich get richer and the rest of us barely scrape by.
BTW, my father is now glad he wasn't "allowed" to buy the stock, with it falling and the trouble with the IPO.