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Key takeaways
- New IPO stocks may not be available for trading right at the regular US market open.
- Orders can be placed only after the stock is officially active and live market data is available.
- IPO trading may begin later in the morning or early afternoon depending on the exchange’s opening process.
- Fractional trading may not be available immediately at launch.
- Some order types may be rejected until live market pricing is available.
What happens when an IPO starts trading
When a company lists on the stock market through an Initial Public Offering, or IPO, its shares may not be available for trading immediately when the US market opens. This is normal and part of the IPO opening process.
Most US stocks begin regular trading at 9:30 AM ET. Newly listed IPO stocks, however, usually do not start trading exactly at the regular market open.
IPO stocks often begin trading later in the morning or early afternoon, depending on how long the exchange’s opening process takes. Once the stock officially opens for trading and live market data is available, eligible orders can be placed on Vested.
Why IPO trading works this way
IPOs follow a different process compared to stocks that are already listed and actively trading. Before trading begins, the listing exchange runs a price discovery process to determine the opening price of the stock.
Price discovery is the process used to establish an opening market price before a newly listed stock starts trading. Orders can only be accepted once the stock is officially active and live market data is available.
Important to know
If an IPO stock is not available right at market open, it does not mean there is an issue with your account or the app. The stock may simply not have officially started trading yet.
Why orders may not be accepted before trading starts
Before an IPO stock officially starts trading, there may not be a reliable live market price available. Because of this, orders placed before the stock becomes active may be rejected.
To help protect users from placing orders without reliable market pricing, orders are accepted only after the stock is officially active for trading and live market data is available.
Order types and restrictions during an IPO launch
During an IPO launch, some order types may be restricted until regular trading is established and live bid and ask prices are available.
| Order type or feature | What to expect during IPO launch | Why this may happen |
|---|---|---|
| Whole-share orders | Whole-share orders may be available once the stock officially opens for trading and live market data is available. | Orders need the stock to be active and quoting before they can be accepted. |
| Fractional trading | Fractional trading may not be available immediately when an IPO begins trading. | Fractional orders require an established market price to validate the order. Once live bid and ask prices are available and regular trading is established, fractional trading may become available. |
| Sub-penny limit orders | Sub-penny limit orders are not supported and will be canceled or rejected until the IPO opens for trading. | Some limit order formats may not be supported before the stock officially opens and live market pricing is available. |
How it appears on Vested
Once trading begins and the stock becomes available, you will be able to place eligible orders through Vested.
If the stock has not officially started trading yet, it may not be available for eligible order placement until the exchange completes its opening process and live market data is available.
What to do next
- Check back after the regular market open if a newly listed IPO stock is not immediately available.
- Wait until the stock is officially active and live market data is available before placing eligible orders.
- Be aware that fractional trading may become available only after regular trading is established.
- Review order details carefully, especially if some order types are restricted during the IPO launch.
This page is for informational purposes only and is intended to help users understand the IPO trading process. Availability of IPO stocks, order placement, fractional trading, and order types may depend on exchange processes, broker systems, market conditions, and live market data availability. Nothing on this page should be considered investment advice or a recommendation to buy, sell, or hold any security.
Frequently Asked Questions
Why can’t I place an IPO order before live quotes are available?
Before an IPO stock officially starts trading, there may not be a reliable market price available. Orders are accepted only once the stock is active and live market data is available.
Will SpaceX be available to trade as soon as the market opens on June 12?
SpaceX is expected to list on June 12. Like other IPOs, it may not be available right at the regular US market open. Trading can begin only after the exchange completes its opening process and live market quotes are available.
Will fractional trading be available immediately for the SpaceX IPO?
Fractional trading may not be available immediately when an IPO begins trading. It may become available after regular trading is established and live bid and ask prices are available.
