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Your Questions About Stocks To Buy

Sandra asks‌

Stocks. After the underwriter buys the ipo, how does the issuing company buy stocks back? If i got this straight the underwriters own the stock not them. There involvement in the stock ends when the underwriters purchased them. If you were subject to a stock buy-back who did the request come from? The issuing company or the underwriter? Also...when individual borrows said stock from broker, are you borrowing a piece of the company or are you borrowing a said piece of paper from brokerage?

Steve Winston answers: Not quite - the underwriters do buy the stock from the company, but the goal is not to hold the stock but to sell the stock to investors. IN a successful IPO, at the end, the underwriters own no stock (well, at least no stock that they didn't want to hold). In a stock buy-back, it is the company making the offer to buy-back the stock. This is done when the company either wants to go private (in which case it buys back 100% of outstanding stock) or when the company wants to decrease the amount of stock on the open market (for any of a number of reasons). In the last case, you are talking a short sale. In this case, the seller borrows the stock from the

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broker, who then borrows the stock from the accounts of other people who have trading accounts with the broker. Since a share of stock is a share of the company, in essence you are borrowing a piece of the company, except you never own that piece of the company so in reality, you are really taking a loan from another investor which you must pay back.

James asks‌

What are some good buy opportunities for stocks during this recession? Given that a lot of stocks are down at the moment, what are some good buy opportunities? I don't want to buy stock that will keep going down and be worthless, but if there are some good buys now that are safe I'd like to invest in some. I can afford to wait a while if it means a good turnaround.

Steve Winston answers: If you want cheap and safe stock and invest on long term i suggest you should buy C, and BAC because government will never let these big bank fail

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Your Questions About Stocks To Buy