Before coming to market, initial public offerings (IPOs) must issue a  prospectus describing the company and its risks. Virtually every prospectus  I’ve ever seen is written in unreadable legalese. I doubt any analysts not  associated with the investment banks that wrote them bother to even glance  at them. The investment banks are paid unbelievable sums to underwrite  IPOs. Underwriters can make as much as $20 billion a year issuing IPOs.

After reading the prospectus, the analyst produces reports promoting the  issue. The report gets picked up in the chat rooms and the hype is on.  IPO prices can be manipulated in many ways by the issuers and the  underwriters. In addition to analyst reports, popular IPOs are sold by allocation  only to those willing to either buy additional shares after the IPO or  give additional business to the underwriters. With buyers in place before the  initial offering, the offering price can be raised increasing returns to the  issuer and the underwriter. When the price pops on the opening, insiders are  given the opportunity to unload shares at tremendous profits.

The only non-insiders who are happy with IPOs are volatility junkies. In  a bull market, many IPOs double and triple in price the day of the offering.  When their popularity wanes, they drop back to the initial price or lower. In  a bear market, new IPOs are rare. The few that come to market often  collapse below the IPO price. However, the investment bankers retain their  billions of profits.

IPOs can be thrilling and depressing. The winners make great chat on  the Internet and conversation at parties. Every once in a while, a winner  will grow into a great company such as Microsoft. The losers are just part  of the gamble for real speculators. Most investors will find IPOs outside  their comfort zone.

If you qualify for a Canada Student Loan, you (or the school you plan to attend) will receive a letter of assessment, a Certificate of Eligibility (Schedule1A), an instruction sheet, and a loan agreement within four to six weeks of your application.

Complete your loan documents and have your post-secondary institution complete the Confirmation of Enrolment section of your Certificate of Eligibility. (Note: in some cases, enrolment may have already been confirmed electronically — contact the financial assistance office at your post-secondary institution for more information.)

Submit your completed loan documents in person to a designated Canada Post outlet within 30 days of the day your school signed your Certificate of Eligibility.

If you provide a void cheque, your funds will be deposited directly into your bank account within a week of the NSLSC receiving your properly completed loan documents or within a week of the disbursement date
on your Certificate of Eligibility, whichever is later. Allow an additional week to receive your funds if a cheque is being mailed to you.

Important Deadlines

Since final deadlines can vary among provinces and territories, check with your provincial or territorial Student Financial Assistance Office for deadline information.