Certain Ways That Will Help You in Buying Facebook Stock
In Facebook stock market – Facebook symbol will be : FB.
In this year the company had announced Facebook (FB) to offer initially to the public, many requests regarding buying of facebook in stock from many people such as near and dear ones and also from acquaintances have been inundating to buy Facebook on IPO. Most of the people who are interested in buying the site may never have invested before or think about investing in life. But whenever luck favors one can gain huge amount of stock price while investing in buying the initial offer in stock for the very first day or the next day.
Getting initial offering to buy in stock as a part of it is like getting wealth not only luck but the question is how can one get this offer? There are three leading underwriters such as Goldman Sachs (GS), J. P. Morgan and Morgan Stanley (MS). Underwriters raise money to the companies as investment brokerage companies and they also allocate the shares of the investor. Underwriters that are in second tier include Barclays Capital, Allen & Company and BofA Merrill Lynch.
You can get some shares if you are registered with any of the firms given above. Slim pickings may be there while allocating with the offer but with other brokerage firms also underwriters would distribute their shares. Therefore getting in contact with your investment firm is the first step while getting some shares from the broker is the second step.
Recently a policy is implemented as said by a spokesman in TD Ameritrade (AMTD), if you want to get shares of an IPO then you need to have at least $250,000 in account and this is a part of wealth. But in case if the shares available is less than the stock demand then a lottery like system will be implemented by the firm to choose the client.
There are also some other indirect process to buy stakes in Facebook besides the stock offered. Buying stocks of companies is another way to invest money in Facebook. Microsoft (MSFT) is an example of social networking platform that owes approximately 1.3% and only a small portion is represented in Microsoft’s assets.
Facebook stock can be avail through mutual funds and their ownership and this is another way to get Facebook stock. More than 20 of the mutual funds turned up by the WallStreetNewsNetwork.com in different ways in getting shares of Facebook. More than 20 of the mutual funds are turned up by the WallStreetNewsNetwork.com in different levels of Facebook. Several funds of Morgan Stanley regarding owning of Facebook are there and they include Morgan Stanley’s MSEQX, CPOAX and AMOBX.
Some of the funds invest on Facebook stocks by T. Rowe Price group are TRBCX, PRGTX, PRMTX, RPBAX and PRGSX. From the portfolio only a small portion is made by Facebook with these funds.
Investment in management firm is the alternate option of investing in mutual funds. Numbers of mutual funds are managed by the company to own some of the stakes of Facebook and T. Rowe Price Group is one of them.
Some close-ended funds are also there for getting stakes of Facebook. This fund owns a portfolio which is diversified in owning the stocks and is similar to mutual fund which depends on the shares of intrinsic value known as Net Asset Value. The net asset value can be trade above or below based on demand and supply of the price of CEF. 5 % of the assets which are put in Facebook are the Firsthand Value Technology (SVVC) of CEF.
Those companies handling stock trading can also buy the stock and is the last alternative to buy stocks. But only accredited investors have this option. And in order to get this chance you should know about accredited investor and what they are?
A person whose income exceeds $200,000 for the most recent two years or income more than $300,000 jointly with spouse in the past years and expecting equivalent income for the present year also may be referred as an individual accredited investor according to Securities and Exchange Commission. Another explanation may include person exceeding $1 million as net worth individually or with a spouse as joint net worth while purchasing. And you can consider yourself in contacting Second Market or SharesPost if you come under this category else you should not try even.
You can check the freely available list to see the companies on WallStreetNewsNetwork.com comprising more than 25 companies. You can also download, update and sort.
Expecting to Make More Profits in Few Months
From the month of May shares in trade may probably start with only weeks away with their original stock offering. In case if the stock raises than the expected money of about 7 to 10% of stocks available that are sold by the company will be one of the largest web IPO ever and this will make United States the most valuable company by making $70 billion and $100 billion.
In comparison Bank of America’s market cap are $75 billion, $90 billion for Amazon and Citigroup, and $100 billion for McDonald’s. Founder Mark Zuckerberg in May on his 28th birthday will give him $20 billion as personal net worth if the stock offering increases in this way.
Think Before you Invest-Buy or not to Buy
Depending on the price for any stock you should not guess as it may harm anything. The company should value the price as low as about $70 bn and $110 bn as high price as suggested by initial indications on stocks. Priced at higher end must be kept away if the stock is priced at lower end and therefore you should deal for it.
Asking questions later and buying earlier are suggested by some pundits. According to CNBC’s Jim Cramer you need not to worry being offering rich valuation by the company in an article which was published recently. He said that Facebook has more than 800 million users and it is the ideal model for business and generating massive revenue. Hence it needs to be valued gigantically. In addition, he further added that Facebook is also growing at a very fast rate.
Among the valuable company Facebook is one of them and there is no doubt in this but you cannot bargain the price. And this offer is one of the biggest deals that will last forever for the years to come. With this situation it will be not be an easy thing to get the shares where inflation in stock price is going to be there and odds are good with the hype.
Among the experts in Forbes, one of them said that supply as compared to demand will be tighter in demanding the stock for outstripping supply with about 4 to 1 as a factor of supply.
Getting an IPO may be a difficult task if you do not know someone or if you are not a heavyweight investor and the on trading the very first day the stock will pop.
Therefore one of the important things is the expectation of the company to make money in present and also in future may it be on any stock, the value of Facebook or anything.
And you cannot guess on how much the Facebook Company is making money but only the IRS and the insiders knows about it as it is a private company. But it was estimated that around $0.5 billion to $1 billion was profited by the company.
Among the social networking sites Facebook is one of the famous sites with numerous members all around the world that helps in growing the revenue substantially.
Time to know the real deal
If Facebook files are offered to the public then this will be a long process to solve the situation and giving information about this will not be an easy task to answer every question. But if it is true then you can have the chance to check the articles which will be available in thousands from every expert giving their views on the blogosphere and Wall Street.