No, you cannot buy stock in Skims through traditional public stock exchanges because it is a privately held company.
Investing in Private Companies Like Skims
Unlike publicly traded companies whose shares are available on stock exchanges for the general public, Skims is a private company. This means its stock is not readily accessible for direct purchase by the public through common brokerage accounts. Purchasing stock in private companies typically involves a more specialized process and specific investor qualifications.
Requirements for Private Stock Purchase
To buy stock in private companies such as Skims, you must generally qualify as an accredited investor. This designation is given to individuals or entities who meet specific income or net worth criteria, signaling that they possess the financial sophistication and capacity to bear the risks associated with private market investments.
Key aspects of private stock purchases include:
- Accredited Investor Status: This is a fundamental requirement for participating in private market transactions, distinguishing these opportunities from public market investments.
- Limited Availability: Shares in private companies are not offered to the broad public, making them much less accessible than shares of publicly traded companies.
Accessing Private Market Stock
For individuals who meet the stringent accredited investor criteria, specialized platforms exist that facilitate transactions in the private secondary market. These platforms enable the buying and selling of shares in private companies from existing shareholders.
One example of such a platform is Forge Global, which operates a secondary marketplace. Accredited investors can register on such platforms to explore potential opportunities to buy private market stock, including shares of companies like Skims, if they become available from existing shareholders.
