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Here's a list of actions for investors wanting to know how to invest in the Alibaba IPO:
- For U.S. investors hoping to get in on the action and profit directly from the IPO, the deadline to call your broker and place orders for allotted shares is 4 p.m. EST on Wednesday, Sept. 16.
- Otherwise, you can place your order the morning BABA opens and hop in "at Market," meaning you'll pay whatever price is then available. Limit orders probably won't do you a whole lot of good given how volatile Alibaba might be when it starts trading.
- You can also profit from the Alibaba IPO by looking at ETFs that might pick up Alibaba stock after it starts trading.
PowerShares Golden Dragon China Portfolio (NYSE: PGJ) has a position in more than 70 companies, and its holdings are all U.S.-listed companies that generate most of their revenue in China. For that reason, Alibaba is the perfect candidate to join PGJ's holdings once it starts trading on the New York Stock Exchange. The three largest holdings for PGJ are Baidu, Ctrip.com International Ltd. (Nasdaq ADR: CTRP), and Qihoo 360 Technology Co. Ltd. (NYSE: QIHU).
Renaissance IPO ETF (NYSE: IPO) is a play on the entire U.S. IPO market. The fact that Alibaba could be the largest U.S. IPO of all time makes it likely that Renaissance will buy Alibaba stock. According to the fund, it holds only the largest and most liquid newly listed U.S. IPOs. Stocks are only added to the portfolio after they have traded for at least five days and are removed after two years. That five day waiting period helps negate some of the early volatility IPOs face.
- But the BEST way to invest in the Alibaba IPO is to profit from the market ripple effect this massive offering has created. The best news about the Alibaba IPO is that it has created a major profit opportunity that most investors haven't noticed…
In fact, this could be your one and only chance to make the kind of gains normally reserved for the high-net-worth investors and bankers. And there are three ways to play. You can learn more about this Alibaba IPO investment opportunity here.