<p>When a company issues new shares on the primary market, is it possible or even obligatory to reserve a given amount for retail investors?</p>
<p>If it is possible: How often is this done? (From Wikipedia I know that &quot;<a href="https://en.wikipedia.org/wiki/Financial_market_participants#Retail_investor" rel="nofollow noreferrer">individual investors owned 26% of equities</a>&quot; in 2005, but I assume that most of them are not bought on the primary market. So how much?)</p>
<p>When it is done: How long does it usually take until all shares reserved for retail investors are sold? Or what's the range: from &quot;on the day of issuance&quot; until &quot;after one year&quot;?</p>
<p>Or does it essentially never happen: on issuance all shares are bought by institutional investors?</p>

CC BY-SA 4.0
2022-03-24T10:52:02.613Z
@user253751. Interesting. (Just to let you know: I'm not a retail investor, and I don't have a broker.) So you need a broker (who is an institutional investor, right?). Does he have access to the market that a private person doesn't have? In the end this doesn't matter a lot: from your perspective, you as a retail investor **can** participate in the primary market and be among the first who buys a newly issued share.
Hans-Peter Stricker
CC BY-SA 4.0
2022-03-24T10:53:13.413Z
It seems that there are no shares that are reserved for retail investors - that's what I want to know.
Hans-Peter Stricker
CC BY-SA 4.0
2022-03-24T10:54:03.610Z
Because one needs to be certified to get access to the market? (Maybe a stupid and/or trivial question, sorry.)
Hans-Peter Stricker
CC BY-SA 4.0
2022-03-24T10:55:21.043Z
Finally: The second part of my question - how long may it take that all newly issued shares are sold? - remains open? Have you an idea about that?
Hans-Peter Stricker
CC BY-SA 4.0
2022-03-24T18:27:30.637Z
If you have a retail account with a large broker there is a good probability you will see screens on their website or e-mails informing you that you can invest in IPOs. The marketing happens before the IPO so the banks know something about the level of interest. The size of the equity offered can be reduced if there is low interest or the IPO can be delayed or cancelled or simply scheduled for when there is high interest. For example SK Bioscience (302440.KS) is a vaccine maker that IPO'd in March 2021.
H2ONaCl
CC BY-SA 4.0
2022-03-24T18:57:55.320Z
@H2ONaCl: Thanks, this was quite instructive.
Hans-Peter Stricker
<stock-market><investment>
How are retail investors served on the primary market?
Hans-Peter Stricker
# How are retail investors served on the primary market?

(Asked by: username_0 on 2022-03-23)

When a company issues new shares on the primary market, is it possible or even obligatory to reserve a given amount for retail investors?

If it is possible: How often is this done? (From Wikipedia I know that "[individual investors owned 26% of equities](https://en.wikipedia.org/wiki/Financial_market_participants#Retail_investor)" in 2005, but I assume that most of them are not bought on the primary market. So how much?)

When it is done: How long does it usually take until all shares reserved for retail investors are sold? Or what's the range: from "on the day of issuance" until "after one year"?

Or does it essentially never happen: on issuance all shares are bought by institutional investors?

**Tags:** stock-market, investment

> **Comments:**
> **username_0**: @user253751. Interesting. (Just to let you know: I'm not a retail investor, and I don't have a broker.) So you need a broker (who is an institutional investor, right?). Does he have access to the market that a private person doesn't have? In the end this doesn't matter a lot: from your perspective, you as a retail investor **can** participate in the primary market and be among the first who buys a newly issued share.  
> **username_0**: It seems that there are no shares that are reserved for retail investors - that's what I want to know.  
> **username_0**: Because one needs to be certified to get access to the market? (Maybe a stupid and/or trivial question, sorry.)  
> **username_0**: Finally: The second part of my question - how long may it take that all newly issued shares are sold? - remains open? Have you an idea about that?  
> **username_1**: If you have a retail account with a large broker there is a good probability you will see screens on their website or e-mails informing you that you can invest in IPOs. The marketing happens before the IPO so the banks know something about the level of interest. The size of the equity offered can be reduced if there is low interest or the IPO can be delayed or cancelled or simply scheduled for when there is high interest. For example SK Bioscience (302440.KS) is a vaccine maker that IPO'd in March 2021.  
> **username_0**: @username_1: Thanks, this was quite instructive.  

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## 0 answers

