Glossary·Written by a CPA
Indication of interest
Also called: IOI
A request you put in through your broker for shares of an IPO before the price is set. It's not a guaranteed order.
An indication of interest basically just means you're raising your hand and telling your broker how many IPO shares you'd like, before anyone knows the final price.
Some brokers now let regular investors do this right in the app, but each broker only gets a limited number of shares, and some have account minimums to qualify.
For you, the catch is that you might get all of what you asked for, some of it, or none at all, and you usually have to confirm once the price is set.
Example. As an example, if you request 100 shares in a hot IPO and your broker's allocation is small, you might be filled for 10 shares or nothing.
The catch. Only ask for an amount you'd be comfortable holding for years at the top of the range, because the final price can land above the range.
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This is education, not tax or investment advice. I'm a CPA, but I'm not your CPA. Full disclaimer.