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Schwab to get IPO entrée?
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August 7, 1997: 7:11 a.m. ET
Pact will allow customers to invest when companies go public
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NEW YORK (CNNfn) - Charles Schwab & Co. is believed to be in final negotiations with three investment banks for a deal that would allow its customers to invest in initial public offerings of stock.
The arrangement would offer Schwab customers an unspecified portion of the banks' underwriting of IPOs, the Wall Street Journal reported Thursday.
The deal with Credit Suisse First Boston Corp., J.P. Morgan & Co., and Hambrecht & Quist Group Inc. could be finalized as soon as next week, the newspaper said.
Schwab offers a wide range of mutual funds and stocks at low commission prices. IPOs are appealing because stock prices often rise dramatically after a company goes public. But Schwab has had limited access to such lucrative investments.
The new arrangement will give Schwab an edge against its main competitor, Fidelity Investments, the newspaper reported. Fidelity ads have pointed out that it can offer customers access to IPOs, while Schwab can't. 
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