What is Facebook IPO?

What is this Facebook IPO and is it possible for me to invest in it?

  • I'm kinda new to this stock business and whatnot. What is this Facebook IPO I keep hearing about and is it possible for a kid like me to invest in it? I do have a decent sized savings fund.

  • Answer:

    You won't have access to the IPO initially because that will only go to large clients of the underwriting brokerage firms. That's the way every hot IPO works. There will be shares on the secondary market starting probably the same day as the IPO. The consensus in the financial community is this will be the most overpriced, rip-off of an IPO in history, at least based on Facebook's current financial statements. Those people who jump in right away and hold the stock for more than a month or two will lose big money, I guarantee it. Personally I think Facebook's business model is starting to wear thin - they claim a huge number of subscribers but only about 20% are active and I know people who don't log in for months on end. Also, look at Groupon, General Motors and LinkedIn IPOs in 2011 - all of them are at least 20% lower than the IPO price.

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also i believe you have to have atleast 50k to mess with an ipo or have a margin account with a good line of credit :) lookt at sprint and siri their earnings report goes out feb 8th and 9th for siri im hoping to make a couple k and only investing a couple hundreds but like everyone says options are a lil more risky

James

There is a social media ETF out there SOCL http://finance.yahoo.com/q/bc?s=SOCL+Basic+Chart&t=5d Up 2% today Careful, many state that they have no way of making real money (profits).

Go with the flow

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