Five Star Bancorp (FSBC) Stock

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Contributor, Benzinga
September 3, 2021

Five Star Bank has joined this elite group by officially going public on the Nasdaq global market. The initial public offering (IPO) offered the public 5.2 million shares of its common stocks.

Investors can get a piece of the company at around $20 per share. However, you’ll have to act fast to take advantage of this opportunity. This article provides a step-by-step guide on how to buy FSBC stock and shares the restrictions you should know.

Five Star Bancorp Financial History

Screenshot from Benzinga Pro May 19, 2021

Before buying stock in any company, it is essential to dig up a little about its financial health. Five Star Bancorp is as solid as they come. The company has been around for over 2 decades. Five Star was created to provide banking services for real estate companies around the California capital.

The company has grown and is worth about $300 million. In addition to real estate, the Sacramento-based bank has expanded to other markets such as healthcare, construction and nonprofit. In the past 24 hours, its stock prices have been rising steadily. 

Excellent 3rd-party ratings have also put this institution on the radar, including being rated as a “superior bank” by the IDC and ranking 14th in the nation for SBA loan production as of the SBA’s fiscal year-end September 30, 2020. 

The FSBC stock reached its peak when it hit $25.15 at 3:34 p.m. on May 5, 2021. 

Five Star Bancorp Potential

All stocks come with a certain level of risk. However, specific indicators can tell you whether a stock is going to be a success or not, and Five Star Bancorp checks most of these boxes. 

Five Star Bancorp has been in the stock market since 2007, a period through which it’s doubled from $8 to $17. The only time it dipped significantly was at the height of the COVID-19 pandemic. As a result, the FSBC stock hit $12.31 for the first time in 4 years.

This short dip is no cause for concern as all stocks suffered during this period. However, in just 24 hours of trading, the stock prices have shot up 21%. If this indicates things to come, FSBC stocks will continue to be a hot cake for investors. With the IPO officially closing on May 7, 2021, there is still more time to get a piece of the FSBC stock.

How to Buy Five Star Bancorp IPO FSBC Stock

Now that you know that FSBC stocks are up for grabs, the next question is, how do you buy them? 

If you have been part of an IPO before, you know how to buy stocks. However, it can be intimidating when you are trying it out for the first time. Below is a step-by-step guide on how to get your hands on the FSBC stocks.

  1. Pick a brokerage.

    Technology has made the stock market more accessible than ever. Anyone with a computer and internet can trade in the comfort of their living room. Trading online is also significantly cheaper than using traditional avenues. The first step to buying stock is finding the best brokers.

    Your broker should match your investment goals. If you are starting, choose a brokerage service with a lot of learning resources. It is always good to have adequate research and charting tools. Additionally, the brokerage should support your kind of trading. It could be day, swing or trend trading.

    While no brokerage platform can guarantee success, it helps to do your homework before committing to any platform. You should also test out the site to get a feel of it before putting in the real money. Here are other factors to consider.

    • Online security and protection
    • Registration with the SEC
    • Insurance in case the company collapses
    • Broker account fees
    • Trading commission
    • Ease of depositing and withdrawing funds

  2. Decide how many shares you want.

    Once you’ve settled on a broker, the next step is to buy stocks. However, you must first decide how many shares to buy. Most online brokerage firms don’t charge commissions for stock purchases. This allows you to buy as much stock as possible. To get started, you must determine the current stock price and ensure it’s in real-time. 

    Although there are no limits to public traded stocks, experts recommend buying a block of shares. You strive to invest at least $500 worth of shares. If you wanted to invest about $1,000 on the FSBC stock, that would mean getting approximately 40.74 shares. However, if your broker doesn’t support fraction shares, you can settle for 40. There is no upper limit. However, it is also a good idea to diversify rather than spend all your money on one asset.

  3. Choose your order type.

    After locking down the amount you want to spend on the stock, the next decision is order type. An order is simply an instruction to a broker to trade on your behalf. In this case, you will have to buy FSBC stocks. Orders are broadly grouped into market and limit orders. Here are what each order type means.

    Market order

    This type of order instructs the broker to execute the trade at the next available price. For instance, if you are buying FSBC stock, a market order guarantees you will get them. You only place this order if you are not concerned about the price.

    Limit order

    Limit orders instruct brokers to fill an order at a specific price. For this reason, they are commonly known as pending orders. There are several types of limit orders at your disposal. For example, a buy limit allows you to buy the stock at or below a predetermined price, and other options include sell limit, buy stop and sell stop.

    Stop-loss order

    This order remains dormant until market prices reach a specific price. When that happens, the order is activated and transforms into a market order. Stop-loss orders are helpful for investors who don’t have time to watch the market.

    Stop-limit order

    This order specifies a stop price and the limit price. The stop price transforms it into a sell order, while the limit price changes it to a limit order. The sell order will only execute at the limit price or better. Stop limit orders help prevent losses, especially during a flash crash.

  4. Execute your trade.

    After placing your order through your online exchange, the rest is out of your hands. Online exchanges work like an auction. First, with the help of the Electronics Communication Network, the system sells and buys orders. Then, the broker decides which market to take the order. 

    According to the SEC, brokers have a duty to Best Execution. Brokers have an obligation to execute the trade for the best possible price.

    However, not all trades go through successfully, and getting your hands on an in-demand IPO can be tricky. Ensure you sign up to the top online brokerage firms and access the IPO Calendar.

Best Online Stock Brokers

Below is a list of best brokers to consider.

FSBC Stock Restrictions for Retail Investors

Although IPOs are generally open to the public, there are specific rules of engagement. First, you must meet minimum eligibility requirements. FINRA imposes restrictions for a particular class of people known as restriction persons. 

Generally, this list includes people employed by the company and their family members. That is, brokers, member firms, employees and portfolio managers. However, aunts, uncles and grandparents are not part of the list of family members.

Are You Ready to Invest? 

After just one day of trading, the FSBC stocks are already up by 21%. If this trajectory continues, the stocks should double within the week. Ultimately, the decision to buy FSBC stock is up to you. Do your research and make your decision before it’s too late.