In an initial public offering, a company raises money by selling stock to outside investors for the first time through investment banks, brokers and other middlemen. The average investor can only buy a new stock after it hits the open market. In the case of technology companies, that might occur after an increase from the listed IPO price. Brokerage houses often get some shares for customers but usually allocate them only to their biggest and wealthiest clients. For average investors to get in, the best bet is to know someone at the company.
Many companies allow employees to give a set number of shares to friends and family.
Austin's Vignette Corp. gave each employee 200 shares when it went public in February. It's not a really large amount of stock, but it was a way to show my appreciation. All rights reserved.