I wish to know if shares purchased during IPO's can be insured.
I must commend all the contributors on this topic but the real issue is how closely related are these practices in real life situation especially a close-up look at the Nigeria capital market, bearing in mind that we are adopting europe's style of capital/stock trading with a referral to the crash of the American stock market which is today's wall street.
Hope we have peoplle in the house with good history of the world's capital markets.
You cannot insure shares using insurance as we know it. Infact, you cannot insure shares. You can limit the downside risk (and hence the profit potential) by using a combination of bonds, calls, puts and the shares you bought. Not many market in the world offer derivatives. US and UK exchanges offer derivatives and many other exchanges process thier derivatives through a partnership with these big exchanges.
We have some financial engineers that have designed insurance (as we know it) for shares with SWAPs and Futures, but the underlying securities are still the traditional stock + put and shares+ calls.
I know this sounds like greek and it will take some time to sink in (it took a long time for me). Let me know if you need more info.