Probably obvious but will the RM share offer be open to children?

(8 Posts)
evilkitten Fri 20-Sep-13 18:40:01

Oh, and yes, there are age limits. Shares can't be directly held by a minor, but this is easily worked around by either using a designated account or a bare trust.

HL will be able to arrange either for you.

evilkitten Fri 20-Sep-13 18:37:39

For public sales, generally they are. It would be an embarrassment to the government if people lost money immediately, and would be seen as a failure (despite the taxpayer benefitting). For a private sale, no. Last and Facebook spring to mind as a couple of high profile ones that have tanked.

IPOs are generally under-priced evilkitten - simply because the underwriter doesn't want the risk of having to buy any remaining unsold shares.

Will speak to HL, the JISA provider. I don't want to buy the shares within the JISA as her allowance has already been used for this year. I just wondered if there were any age limits that actually applied in buying shares like these?

evilkitten Tue 17-Sep-13 09:13:36

It's a question for your JISA provider. I suspect that unless they're a full-on stockbroker, the answer will be no though - it's likely to involve more effort for them than just buying shares on the open market.

The other question is why you'd want to buy the RM shares. Shares in an IPO are priced for the seller, not the buyer, and you don't have the natural balance shown on the open market. Expect a rapid change (positive or negative) immediately after launch as everything adjusts to what the market thinks Royal Mail is worth.

Personally, I'm not buying. I don't know much about postal logistics, I don't see any long term advantage the RM has over other post providers (although their unionised stance and unwillingness to adapt could well be a disadvantage), and it doesn't fit in well with the rest of my portfolio.

amicissimma Mon 16-Sep-13 17:59:32

If you can find a bank person who can tell you anything about JISAs I would love to know about him/her!

girlieg Fri 13-Sep-13 18:40:36

You can normally get free advice about this stuff from your bank/bank manager. Might be worth booking a meeting for professional advice.


That's it really.

DD has a JISA and obviously I can buy shares through that, but are government share offers also available to children?

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