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.

Determine your educational needs. Understanding your goals will help narrow the list of programs and institutions you may want to attend.

Assess your financial situation.

A full review of your finances and financing options may help you decide what type and length of program to pursue. It may also reveal that there are other financing options open to you. For help in considering your financial options, including available scholarships and bursaries, visit the “Financing” section of CanLearn.

The Canada Student Loans

Program (CSLP) is only one part of the Government of Canada’s commitment to Canada Student

Financial Assistance

The CSLP helps to make postsecondary education affordable for many Canadians by providing loans and grants to eligible full- and parttime students with demonstrated financial need. Its purpose is to supplement, not to replace, the financial resources that you (and your family, where applicable) are expected to contribute.

Since August 1, 2001, the Government of Canada and the governments of Ontario and Saskatchewan have partnered their respective full-time loans to create Canada–Ontario Integrated Student Loans and Canada–Saskatchewan Integrated Student Loans.

If you decide a Canada Student Loan is the right option for you, consider the following:
A. Is your chosen school designated for the Canada Student Loans Program? Ensure that it is by checking with your provincial or territorial Student Financial Assistance Office.
B. Are you eligible? The CSLP works in partnership with the provinces/territories to deliver financial assistance to parttime students. Quebec, Nunavut and the Northwest Territories do not directly participate in the CSLP and operate their own student financial assistance programs.