How to Buy Chime IPO Stock on the Open • Benzinga

Do you want to buy an IPO? Sofi Active Invest allows you to participate in upcoming initial public offerings before they are traded on an exchange.

Fintech, mobile platforms and improved cybersecurity ensure that neobanks are booming. Neobanks offer financial services exclusively online and avoid the need for physical banks.

Chime is a neo bank that offers lower costs, higher income savings accounts and a handy mobile app. Take a look at the interest in Chime's initial public offering and learn how to buy Chime's IPO stock right now.

When is Chime's IPO date?

If you're looking for a specific date on the IPO calendar for Chime's public debut, you may have to wait a while. Analysts expect the company to go public at the end of 2021.

The company's final round of funding raised $ 485 million. That puts the company at $ 14.5 billion, making Chime one of the most valuable US fintechs for consumers.

Glockenspiel financial history

At the time of writing, Chime had not yet filed his Form S-1 with the Securities and Exchange Commission (SEC). Without this document, it is difficult to analyze the details of Chime's tax performance.

However, many institutional investors began to put more emphasis on supporting pre-IPO companies, mainly due to the fact that the public markets became very frothy. Given that popular speculative deals like cryptocurrencies have been showing a lot of volatility recently, it is likely that institutional players will continue to support IPO ambitious companies with relevant companies and technologies.

Chime is a preeminent private equity financing company. As of August 2013, the fintech company has raised over $ 1.5 billion. Key investors over the years have included DST Global, Menlo Ventures, Cathay Innovation, Aspect Ventures and Crosslink Capital.

Given the huge institutional interest in Chime, management has options on how to go public. Of course, it can take the traditional approach or list its stocks directly. And Chime can become a reverse merger target through a Special Purpose Acquisition Company (SPAC).

Chimes potential

Chime's IPO offers significant upside potential despite significant financial details. The company enjoys a unicorn rating from big funders. This is no small fact to be ignored, especially in this insane market environment where everything has seemingly increased in value.

Fears about COVID-19 and its various mutations could continue to create incentives for fintech platforms and contactless services. According to the latest information from the Centers for Disease Control and Prevention (CDC), 89.2 million Americans have been fully vaccinated. That's roughly 27% of the US population, which still leaves many unvaccinated. For security reasons, neobanks could benefit from the increasing demand.

Long before the pandemic, millennials were dumping cash in big cities for credit cards, alternative payment solutions and mobile apps. With this population group being the largest group in the US workforce, millennial trends will have a tremendous impact on the consumer economy.

How to Buy Chime IPO Stock

With Chime's IPO likely farther away, retail investors may have two viable options. First, if Chime chooses a traditional IPO, they can attempt to acquire shares at their original asking price through platforms that allow retail investors to buy shares prior to the IPO.

Second, you can wait for Chime to release its shares to the public. While this puts you at a disadvantage due to the likely IPO pop, there is no need to worry about holding your money on any pre-IPO investment.

Remember, just because a startup is about to go public doesn't mean it will be successful. The WeWork disaster offers a cautionary story.

If you choose the latter approach, the process is straightforward. If you know how to buy stocks, you are already ahead of the game. If not, please follow the steps below.

Step 1: choose a broker.

Before you can do anything in the stock market, you must first choose a broker. Decades ago, brokers' prices for their services varied widely.

The introduction of mobile investment apps today forced brokers to offer much more competitive prices. Basically, almost every broker offers the same incentives as commission-free trading.

What this means for you is that you can now choose a broker who best suits your needs and ambitions. If you're constantly on the go, a mobile app may have everything you want. However, if you want to expand your investment sense, you should consider robust, full-service platforms.

Below is a list of the best brokers to consider.

Step 2: Decide how many shares you want.

Your number of shares determines your profitability potential and therefore your risk. Of course, the more shares you own in Chime's IPO, the more money you will make if the stock goes up. However, the opposite is also true when Chime's public debut fails. Hence, save your largest acquisitions for your most compelling opportunities.

Regardless of the number of stocks you choose, be sure to write this down in advance. It is almost always better to trade based on well-founded strategies rather than emotions.

Step 3: Choose your order type.

Due to constantly changing prices, you need to use certain types of orders to do your business. Below is a list of important information that you need to understand before placing your first order.

• Offer: The bid is the highest price a buyer offers for a share. It's always lower than the question.
• ask: In contrast, the request is the lowest price that a seller will accept. It is always higher than the commandment.
• Spread: The spread (or sometimes called the bid-ask spread) is the difference between the bid and ask price. It is also the de facto indicator of market liquidity and risk. Tighter spreads indicate higher liquidity and thus lower risk. That's because if you decide to sell, you can likely find a buyer for your stock. Wider spreads indicate lower liquidity and higher risk.
• Limit order: Use a limit order to buy stocks at a specific price. Note that there is no guarantee that the stock will hit this price. Therefore, you can potentially leave your limit order unfulfilled.
• Market organization: If you want to buy stocks at the usual price, choose a market order. This will automatically fulfill your request at the next available price. Note that buy orders are executed on demand and orders are sold on bid.
• Stop loss order: Use stop-loss orders to protect your stake from volatility. This type of order will automatically leave you at a set price or the next available price, whichever comes first. The greatest risk here is in the gap-down session, where a stock opens much lower than at the end of the previous session.
• Stop-limit order: You only leave stop-limit orders at a set price. However, if your target stock never hits the set price after a gap-down session, it would have been better to place a stop-loss order instead.

Step 4: execute your trade.

To execute your trade on a market order, please do the following:

1. Choose the type of action (Buy or Sell).
2. Enter the stocks you want to buy (or sell).
3. Click the Buy (or Sell) button.

For limit orders, follow the same steps as above, except that you must also enter your desired execution price.

Chime restrictions for retail investors

Before participating in Chime's initial public offering, be sure to read the Financial Industry Regulatory Authority (FINRA) guidelines on restricted persons. These individuals cannot participate in IPOs mainly because of their insider status.

Chime pre-IPO

In the past, only institutional investors and well-connected private investors had access to stocks prior to going public. The underwriters offered a discount on what the market could carry for the IPO stock to reward early stakeholders. Platforms like ClickIPO now allow regular private investors to participate in selected pre-IPO stocks.

Since Chime has not yet submitted its debut, its equity unit is not available on ClickIPO. But you should watch this room as the story unfolds.

Banking solutions for the next generation

In addition to providing a unicorn rating company, Chime represents consumer behavior evolution. Millennials and Generation Z grew up with digital technologies, so the concept of neobanks is a matter of course for them. And the fears associated with the pandemic can bring multiple generations to Chime's contactless platform.

Read up on Chime's potential and decide if you're ready to invest in Chime's IPO this year.

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