How to Buy SpaceX Stock on Its IPO Day

After years of speculation about an initial public offering (IPO), SpaceX shares are expected to start trading on the Nasdaq stock exchange on June 12. Projections foresee it raising $75 billion, making it the largest IPO of all time.

Before the big day arrives, there are a few tidbits of information to look at that can help any investor who wants to buy shares start setting up their game plan. That includes details of everything from who can invest at the IPO price to which types of orders can be placed to a way to gain exposure to SpaceX without directly investing.

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Understanding the SpaceX IPO price

For the SpaceX IPO, there will be two prices investors will hear about. The IPO price is the price at which a company sells shares to select investors and institutions, while the public typically can only buy shares when it publicly debuts, and the stock will likely launch with a different price on its first trading day. For instance, Cerebras Systems, a rival to Nvidia, had its own recent high-profile public offering. Its IPO was priced at $185, but shares began trading to the public at $350 per share.

According to Barron's, five online brokers are offering customers the opportunity to buy shares at the SpaceX IPO price, which is $135 right now: RobinHood Markets, SoFi Technologies, Charles Schwab, Fidelity, and E*TRADE from Morgan Stanley. There are, however, different rules for qualifying to buy shares at that IPO price based on the brokerage, and it isn't guaranteed that investors who place an order at that price will get all the shares they want or, for that matter, any at all.

Buying shares on the day the stock goes public

If you are planning to invest on the day the company goes public, the most direct way is to use an online broker, search for the ticker SPCX, and place an order. Investors can choose a market order to buy shares and own SpaceX stock immediately. Another strategy is to set a limit order, which buys shares at a specific price if it is reached.

The main benefit of the market order is immediacy and locking in those shares, while a limit order gives more potential control over the price. With a limit order, however, the risk is that it never reaches the target price and is eventually canceled.

Gaining exposure but limiting risk

"The increasing number of commercial space launches and the upward trend in upmass [measured in kilograms] serve as unmistakable signs of space industry growth. Space is a high-risk, high-reward industry, however," according to a research report from The Motley Fool.