Google IPO Update
Techdirt and the disgruntled investor in this story have it wrong as to why Google rejects bidders, casting some blame on the underwriters. They can't seem to figure out why after answering a bunch of questions in the registration process truthfully, the investor gets a "...we find you are ineligible..." message. They think it might have to do with his net worth not being high enough.
He tells us his responses to the questions posed by the online form and I bet it's because he told them he was a speculative investor. If he would have just read the prospectus or other stories about how Google is trying to discourage speculative investors (those who are in for quick, risky, and high profits) from participating and increasing the instability/volatility of their stock price, he would have got his bidding registration accepted and
So... if any of you want to try your hand, remember that when they ask whether "your investment objectives include speculative investments," consider saying NO. By the way... the more I think about this, the more I realize I have no right to give advice of this kind... I not sure that any one answer will really disqualify you. Just read the prospectus, have realistic expectations, trust Google, and answer honestly.
From Google's Prospectus: "Many companies going public have suffered from unreasonable speculation, small initial share float, and stock price volatility that hurt them and their investors in the long run. We believe that our auction-based IPO will minimize these problems, though there is no guarantee that it will."