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Coursera's IPO debut will happen on March 31. The company will issue 15 million shares during the IPO with a price range of $30 to $33 per share. The COVID-19 pandemic disrupted virtually every industry, giving online education firm Coursera a leg up but initially changing its public offering (IPO) ambitions.
How to Buy Coursera IPO Stock Summary:
- Pick a brokerage: You must have a broker in order to purchase shares.
- Buy shares and pick an order type: Select how many shares you want what order you want to place.
- Make your trade: Buy or sell and done!
When is the Coursera IPO Date?
The Coursera IPO date will happen on March 31, 2021. The online education provider could receive a valuation of approximately $5 billion.
The online education market is red hot and sector rival Udemy may also go public, which suggests that the pressure is on to attract the most investor dollars ahead of the competition.
Coursera Financial History
Coursera started off as an ethos more than a business model. When the company launched its services in January 2012, it had a mission to deliver the best education freely to anyone who wanted it.
Over time, Coursera sought to monetize its platform, eventually settling on a pay-per-course business model. The main key to the company’s success involves its connections to renowned academic institutions. Coursera’s website states that degrees are “conferred and accredited by the universities themselves.”
The only difference between a degree from Coursera and attending the same university in person is that employers may not care how you got your degree, only that you received it.
It’s no surprise that Coursera has enjoyed growing support with its fundraising history. For instance, in 2012, the online education provider generated $22 million in Series A funding. Last year, it attracted $130 million in a Series F funding round.
Coursera has had 9 funding rounds, raising a total of $443.1 million.
Unlike other public debuts, the Coursera IPO has massive upside potential no matter which way the pandemic turns.
Should COVID-19 become endemic as some medical experts fear, it’s possible that remote learning will be at least a semi-permanent fixture in the academic landscape. If so, Coursera can empower students and allow them to complete their education in a safe environment. The platform also protects faculty and campus administrators.
On the other hand, should we manage to address the novel coronavirus, the Coursera IPO will still enjoy supreme relevance. That’s because when you compare the value-for-dollar proposition of the underlying service, it’s remarkably cost-effective relative to the traditional process of attaining a four-year degree.
The U.S. Federal Reserve estimates that in the 3rd quarter of 2020, Americans owed a total exceeding $1.7 trillion in student loans. Unfortunately, the college debt burden isn’t getting any easier, sparking debate in Washington about how to alleviate this load.
Using taxpayer money to support other people has never been popular. However, with platforms like Coursera, they represent solutions everyone can agree on.
How to Buy Coursera IPO Stock
Obviously, to participate in the public capital markets requires you to be familiar with how to buy stocks. IPOs are a different breed in that they’re an unknown commodity. In theory, IPOs could be lucrative — the reason why they’re going public implies they have tremendous growth potential.
However, you just never know how the market will react over time. IPOs for regular retail investors pose another challenge. Participating in the ground floor often requires you to be an institutional investor or a sophisticated private investor with a high account balance and deep connections.
As an investing newcomer, you limit yourself to wagering on the market price of the Coursera IPO, the least desirable option. However, the Bumble (NASDAQ: BMBL) IPO demonstrated that when you’re betting on a hot company, getting in after the institutional players isn’t always a negative.
- Pick a brokerage.
Before you can buy into the potential Coursera IPO, you must first select a channel to acquire shares. There’s never been a more convenient time to be an investor but picking the best brokers for your needs involves more than merely financial incentives such as commission-free trading.
Certain brokerages emphasize convenience over substance, while others open the full spectrum of investing options. Specific brokers include robust customer service networks and/or educational materials.
- Decide how many shares you want.
The stock market’s transactional units show up in shares, not dollars.
To make the conversion, take the desired dollar amount you wish to invest and divide it by the market price of the target stock. Some brokerages offer fractional share ownership although this is not a standard feature.
- Choose your order type.
The underlying asset fluctuates in value with stock market fluctuations. Therefore, you must familiarize yourself with these terms and concepts.
• Bid: A bid is the maximum price a buyer is willing to pay for a stock. This will always be lower than the ask.
• Ask: The ask is the minimum price that a seller will accept. The ask will always be lower than the bid.
• Spread: The bid-ask spread is the difference between the bid and ask price. Investors make money through speculation while market makers earn a living by selling investor stocks at a profit from the spread.
• Limit order: Limit orders execute at a predetermined price. They offer maximum control of your transactions. However, no guarantee exists that the target stock will reach your predetermined price.
• Market order: Market orders execute at the next available price. They’re advantageous because they execute if placed during normal session hours.
• Stop-loss order: Stop-loss orders function as market orders in reverse. They exit you out of your position at a specified price or the next available price, whichever is available. This means that following a gap-down session, you could end up exiting a position at an extremely low price point.
• Stop-limit order: Likewise, stop-limit orders involve limit orders in reverse. They exit you from your position only at a specified price. Therefore, in a gap-down session, a stop-limit order won’t sell until your specified price gets met. However, the disadvantage is that the market may never reach that price.
- Execute your trade.
Market orders make the process simple — just hit the “buy” or “sell” function and your broker will automatically execute the order at the next available price. Limit orders add a step — inputting your desired price to execute the order.
A hotly anticipated debut like the Coursera IPO can potentially jump significantly from its opening price. If you truly wish to acquire shares, you may want to place a market order. However, if you want absolute control over your exposure, the limit order is your best solution.
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A Compelling Market Debut
Competitive pressure and the opportunity to generate significant capital through a market debut suggests that an IPO will occur. If this turns out to be the case, you may wish to wager on this compelling opportunity.
If the pandemic worsens, Coursera offers a contactless solution for higher education. On the flip side, if COVID-19 cases fade out, the company maintains its relevance because of its cheaper solution for aspiring students.