How to Invest in New Stocks

One way to get some new money is to invest in some new stocks. The newest of the new stocks are IPOs (initial public offering). IPO stocks aren't usually offered to the general public — you may have to go through a specific brokerage firm. Investing in news stocks can be beneficial, but keep in mind that IPOs come with an increased risk compared to established stocks since you don't have past stock performance to research.

Step 1

Find a listing of updated upcoming initial public offerings by corporations. You can find a listing at Hoovers, Reuters or a similar financial news reporting website. Sort through the companies to identify potential stocks that you might want to add to your investment portfolio.

Step 2

Contact the company directly to ask for the name of the brokerage that handles stock sales for the IPO. Gather as much information about the company as possible, including past revenues, number of employees, press releases regarding new and upcoming products and news stories about the company's outlook.

Step 3

Call the company's brokerage to inquire about investing in the new stock. The broker may ask you for detailed questions about your financial status and require that you're already a client with the brokerage firm. The brokerage may only offer IPO shares to a select list of clients they've already identified. You may have to have a minimum cash balance in your brokerage account in order to purchase shares.

Step 4

Purchase shares of the new stock of your choice. Keep in mind that you may have to pay an additional fee to the brokerage firm that gets integrated into the price of each IPO share. Ask your broker to confirm the date the stock will begin trading so that you can add it to your stock portfolio watch list.

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