The State provides individual investors the opportunity to place orders to buy bonds or notes before other investors.
Individual investors enjoy advantages when they buy bonds or notes during the early order period
- Individual investors get to place their orders before institutional investors, such as mutual funds or insurance companies.
- They earn the same investment return as institutional investors who buy the same bonds or notes.
- They do not pay the upfront brokerage fee/commission. (Individuals should check with their broker to learn about any other transaction or account maintenance fees.)
To buy bonds or notes, follow these simple steps:
Step 1 – Have a brokerage account
- You must have an account with one of the brokerage firms participating in the bond or note sale. Bonds and notes cannot be purchased directly from the State. If you do not have an account at one of the participating firms, you may open one and purchase bonds or notes during the early order period. (If you have a brokerage account, go to Step 2.)
- Investors are encouraged to begin the New Account process well in advance of the sale. Depending on the brokerage, internal new account procedures may take some time to process.
- Each firm has its own requirements for opening an account. The State does not endorse any particular brokerage firm. Additionally, the State does not guarantee that any one of these firms will open an account for an investor.
Step 2 - Learn about the bonds or notes
- Bonds or notes can only be offered through an Official Statement. Download and read the Preliminary Official Statement to learn about the bonds or notes, including their security, maturity dates, the types of projects they finance and other information you may find important to help you make an informed investment decision. This website is not an offer to sell any bonds or notes.
- Find out the credit ratings California bonds or notes have received.
Step 3 - Place your order
- Contact the broker with whom you have an account, either online or by phone, to get more information about how to buy bonds or notes during the early order period.