US shares, in plain English

The terms you'll run into when buying ANT from Australia. General information only.

Bookbuild

How the final IPO price is set. Underwriters collect demand from investors across a price range, then set one price for everyone.

Allocation

How many IPO shares you actually receive. Popular IPOs are often scaled back, so you can get fewer than you applied for.

Lock-up period

A set time after listing when insiders and early investors can't sell. When it ends, extra supply can hit the market.

Nasdaq

The US stock exchange where ANT is listed. It runs on New York time, which is overnight in Australia.

Pre-market and after-hours

Trading sessions before 9:30am and after 4pm New York time. Prices can swing more and spreads are often wider.

Market order

An order to buy or sell immediately at the best available price. Fast, but on a volatile stock you might pay more than expected.

Limit order

An order that only fills at your chosen price or better. Slower, but you control the price.

Bid-ask spread

The gap between the highest price buyers offer and the lowest price sellers accept. Wider spreads cost you more.

FX spread / FX fee

What your broker charges to convert AUD to USD. On bigger trades it can cost more than the brokerage.

W-8BEN

A US tax form for non-US investors. It usually cuts US withholding on dividends to 15% under the Australia–US tax treaty. Most brokers handle it at sign-up.

Custodian

Most Aussie brokers hold US shares through a custodian on your behalf, unlike CHESS-sponsored ASX shares held in your name.

Fractional shares

Buying part of a share, so you can invest a set dollar amount instead of a whole share.

Market cap

The total value of a company's shares: share price multiplied by shares on issue.

Nasdaq-100

An index of the 100 largest non-financial companies on Nasdaq. Big new listings can be fast-tracked in, which can bring index-fund buying.

S-1

The registration statement a company files with the SEC before an IPO. It holds the financials, the business description and the risk factors.

Capital gains tax (CGT)

Australian tax on profit when you sell. Held over 12 months, individuals generally get a 50% discount.