I keep hearing about people getting rich off the Facebook IPO. Can I get a piece of this action?First of all, the individuals who stand to make the most of out this deal are the founders of the company, the venture capital investors, and the bankers arranging the deal. Also, people who joined the company in its early days will likely make a substantial amount because they were likely given stock options as part of their employment compensation. And there are a few folks, like David Choe, the graffiti artist who was also paid on stock options. Once the company goes public, those shares will be converted to stock. And after an initial waiting period, shareholders will be able to trade the stock.
Since you don't work for Facebook, you're not an early investor, or a close friend or family member of the founders, chances are you don't have stock options, And since you're not one of the bankers working on the deal or someone with millions of dollars already invested with the bank leading deal, you're also not going to get a crack at the IPO, To understand why you're locked out of the IPO, you have to understand how the process works, There is only a limited number of shares of the company that will be sold to raise the needed cash, The company hires an investment bank to the birth of venus by sandro botticelli iphone case helps sell its stock and usher it through the IPO process, These banks are trying to get the most money they can from the sale, So for a hot IPO, such as the Facebook IPO, they won't be selling the stock to average consumers, They will be selling it to their institutional investors and to some of their very rich clients - think Warren Buffet and Mitt Romney, We're talking real one-percenters here..
So when will the stock be available to me, and how much will it cost?It's a long process from filing for an IPO to actually going public. Facebook just filed its S1 document with the Securities and Exchange Commission last week. This is the document that its underwriting bank helps it prepare to inform investors of the company's financial situation and to disclose any potential risks. This document officially kicks off the IPO process. Once this document has been filed, the SEC needs some time to make sure all material information has been disclosed to the public. And the underwriters begin marketing the deal to their clients. After the SEC has satisfied its investigation and the banks have done their roadshow, a date can be set for the IPO. Facebook is expected to go public some time in May.
At this point in the process, the price of the initial stock offer is not yet known, The underwriting banks meet with Facebook to figure out what the initial the birth of venus by sandro botticelli iphone case price should be, Remember the banks and Facebook want to get as much money as they can out of the deal, But they don't want to value the stock too high and have it crash soon after it begins trading publicly, They also need to be cognizant of what the market is doing, In some cases, companies may wait a little while until the overall market conditions improve..
The price for each share of stock will typically be set the day before trading begins. At this point, all the IPO investors will get the stock at that defined price. And the company will collect its cash. (This is how Facebook will make the projected $5 billion.). Then the stock will begin trading on the open market. Depending on several factors, the stock could go up or down. But given the frenzy around Facebook, it's likely to shoot up a lot on the first day. And it could remain high for weeks or months.
Copyright © 2019 www.ratticidi.it. All Rights Reserved