Foreword xiii Introduction xv PART I: IPO FUNDAMENTALS CHAPTER 1 Getting IPO Shares 3 Risk 4 The Calendar 4 Online Brokers 5 Build Relationships with the Syndicate Firms 8 Dutch Auction 8 Buy on Secondary Markets 10 Private Placements 10 IPO Mutual Funds 10 Directed Share Program 11 Follow-On Off erings 11 Direct Public Off erings 12 IPOs to Avoid 13 Conclusion 14 CHAPTER 2 IPO Basics 15 Why Do Companies Go Public? 15 Reasons Not to Go Public 19 JOBS Act 23 Cast of Characters 23 Conclusion 27 References 27 CHAPTER 3 IPO Process 29 Laws That Impact IPOs 29 Steps of the IPO Process 30 Conclusion 38 PART II: IPOs FOR INVESTORS CHAPTER 4 Finding the Best IPO Information 41 Information to Get Your Feet Wet 42 In-Depth IPO Information 43 Other IPO Information Resources 45 Conclusion 47 CHAPTER 5 Making Sense of the Prospectus 49 Getting a Copy of the Prospectus 50 Main Sections 50 Front Matter 52 Graphic Material 54 Qualification Requirements 55 Prospectus Summary 56 Risk Factors 58 Letter from Our Founder 59 Market Data and User Metrics 60 Use of Proceeds 60 Dividend Policy 61 Capitalization 61 Dilution 62 Selected Consolidated Financial Data 62 Management''s Discussion and Analysis of Financial Condition and Results of Operations 62 Business 63 Management 63 Executive Compensation 64 Certain Relationships and Related-Person Transactions 65 Principal and Selling Stockholders 65 Description of Capital Stock 66 Shares Eligible for Future Sale 66 Index to Consolidated Financial Statements 67 Miscellaneous Sections 67 Conclusion 67 CHAPTER 6 Balance Sheet 69 Some Fundamentals 69 Balance Sheet Overview 71 The Assets 73 The Liabilities 78 Conclusion 81 CHAPTER 7 Income Statement 83 Management''s Discussion and Analysis of Financial Condition and Results of Operations 84 Conclusion 91 CHAPTER 8 Statement of Cash Flows 93 Background 93 Focus on Operating Cash Flows 96 Free Cash Flow 97 Stock Options 98 Factoring 98 Footnotes 98 Fraud and Misrepresentation 99 Conclusion 100 CHAPTER 9 Risk Factors 101 Inexperienced Management Team 101 Need for More Financing 102 Legal Proceedings 103 Market and Customer Base 104 Going Concern 104 Competition 105 Dual-Share Structure 106 CEO Dependence 107 Reliance on the Government 108 Unproven Business Model 109 Limited History of Profi table Operations 109 Small Market Potential 110 Cyclical Businesses 111 Conclusion 111 CHAPTER 10 IPO Investment Strategies 113 Neighborhood Investing 113 Invest in What You Know 114 Study Mutual Fund Holdings 114 Strong Backers 115 Analyst Coverage 115 IPO Rules of Thumb 116 Buy on the Opening or Wait for the Lockup to Expire? 117 Buying on Margin 118 Options 118 Conclusion 122 CHAPTER 11 Short Selling IPOs 123 How Short Selling Works 123 Risks of Short Selling 126 Taxes 127 Finding IPOs to Short 127 Conclusion 128 PART III: IPO SECTORS CHAPTER 12 Tech IPOs 131 The Cloud 131 Social Networking 133 Mobile 135 Marketplaces 136 Security 136 Big Data 137 Evaluating a Tech IPO 138 Conclusion 140 Reference 140 CHAPTER 13 Biotech IPOs 141 FDA Approval 143 Analyzing Biotech IPOs 144 Conclusion 147 References 148 CHAPTER 14 Finance Sector IPOs 149 Banking 149 Asset Managers 152 Private Equity Firms 153 Online Brokerages 154 Insurance 155 Specialized Online Financial Services 156 Conclusion 157 References 158 CHAPTER 15 Retail Sector IPOs 159 Brand 159 Disruptive Threats 160 Major Consumer Changes 161 Timing 161 Check Out the Store 162 Financial Metrics 163 Narrow Base 163 Conclusion 164 References 164 CHAPTER 16 Foreign IPOs 165 Advantages of Foreign IPOs 166 Risks 167 IPO Process for Foreign Deals 170 American Depositary Receipts 171 Direct Investments in Foreign IPOs 171 Conclusion 172 CHAPTER 17 Energy IPOs 175 Crude Oil 175 Natural Gas 176 Coal 177 Alternative Energy 177 Types of Energy Companies 179 Evaluating an Energy Company IPO 179 Master Limited Partnerships 180 Conclusion 181 CHAPTER 18 REIT IPOs 183 Trends in the Real Estate Market 183 Basics of REITs 184 Conclusion 188 PART IV: OTHER IPO INVESTMENTS CHAPTER 19 IPO Funds 191 Types of Funds 191 Mutual Funds 192 Exchange-Traded Funds 194 Closed-End Funds 195 Hedge Funds 197 Fund Strategies 198 Conclusion 200 References 200 CHAPTER 20 Spin-Offs 201 The Basics 201 Investing in Spin-Offs 204 Conclusion 205 References 205 CHAPTER 21 Fad IPOs 207 Spotting the Fads 208 Knowing When to Get Out of Fad IPOs 212 Conclusion 212 References 213 CHAPTER 22 Secondary Markets, Angel Investing, and Crowd Funding 215 Pre-IPO Funding Process 216 Accredited Investor 216 How to Become an Angel Investor 217 Angel Deal Structures 217 Strategies for Angel Investing 218 Due Diligence and the Term Sheet 221 Secondary Markets 223 Crowd Funding 226 Conclusion 228 CHAPTER 23 The 100x IPO 229 The Amazon.com IPO 229 Conclusion 233 Conclusion 235 Appendix A: The Underwriting Process 239 Appendix B: Analyzing the Financial Statement Items 243 Glossary 247 About the Author 259 Index 261.