How to buy shares of Facebook, not a professional trader or investor, and will it return?
According to recent reports, “sources familiar with the situation”, the yield on Facebook IPO will take place during the second half of May. 7th, the company will hold a road show in which top managers of Facebook talk about the prospects for profit growth of the company, and already on May 18 on the American Stock Exchange will have a new ticker – FB. Observing the excitement around the place Facebook, we decided to deal with the questions: how to buy shares of Facebook, not a professional trader or investor, and will it return? How to Buy
There are two ways to obtain shares in Facebook: during the subscription during the IPO, or purchase on the market after the opening of trading. Both options involve opening an account with a broker who works for the U.S. stock market, and the crediting of money. In the first case, you need to focus on the amount of $ 10 thousand in the second – enough for thousands of $ 1 to find the right broker is easy – just enter a search string.
If you choose to receive shares by subscription, and this is the most realistic way to acquire securities Facebook, which does not require training, they will be credited to your account using the formula T +3, ie three days after placement. During this period, it will be impossible to sell the shares.
It is safe to say that in the first days of trading securities Facebook will show strong volatility.Placement hype always give a strong impetus to the quotations in early trading. However, there is some probability that the shares after the offering may fall below the subscription price, and you as an investor will lose money. Difficult to predict the behavior of the action: it will depend on the magnitude of the demand for paper of different groups of investors, its dynamics and other factors.There is also a risk of not getting the shares at all, because of their application for purchase from your broker may be rejected by an underwriter (a legal entity that manages the process of issuing securities and their distribution). In this case, you have nothing to lose, but get nothing. Hurtful situation, but no more.
Some experts recommend to treat the idea to buy shares of Facebook only with a speculative point of view, which means profit-taking in the first days of trading. When unfavorable developments two options: either to fix the loss of, or hold any further, while continuing to take on market risks.
How to get the shares before the IPO
Usually, to get the shares before IPO, you need to work with the company since its inception. Very often, startups offer candidates the so-called restricted-stock as compensation to attract qualified specialists. If the company is able to live up to IPO, these shares may be worth millions, but not all employees are willing to wait that long.
Buy shares in private with employees Facebook, the so-called insiders, it is possible, for example, the site Sharespost – this place is reminiscent of the stock exchange, where insiders meet with investors. The latest deal on Facebook share held here last month for $ 44. This implies a valuation of the company at $ 102.6 billion
In addition to Facebook, on the Sharespost can “bribe” the paper dozens of other well-known companies, for example, Twitter or Linkedin. The site provides reports and cost estimates from independent experts and other useful information for potential investors.