Want a Shot at Facebook Stock? Get in LineGRAND FORKS (WDAZ-TV) - Facebook has priced its more than $421 million shares of stock at $38 apiece and trading starts Friday morning. Since the demand is higher than the supply, many are hoping for a short term pop if they get a share.
GRAND FORKS (WDAZ-TV) - Facebook has priced its more than $421 million shares of stock at $38 apiece and trading starts Friday morning.
Since the demand is higher than the supply, many are hoping for a short term pop if they get a share.
"If I knew much about stocks, it probably would be an interesting proposition," student Jon Langeliers said.
The majority seem to think buying Facebook stock would be a smart investment.
"This will be around for a long time," Facebook user Tim Spark said.
But some are a little hesitant about where their money would end up in 10 years.
"The next 10 years are going to be very critical," Stifel Nicolaus Branch Manager Bill Haug said.
"I do think Facebook is something that could kind of go away," Langeliers said.
The federal requirement is that a perspective owner already have an account with one of the 24 companies that's in the selling group. Haug's group, Stifel Nicolaus, is one of them.
"With that kind of an over-subscription, unless they have a history of buying initial public offerings, they may not get any of the shares at all," Haug said.
Allocation takes place overnight and Haug says he won't know until Friday how many shares his clients are going to get. With 80 percent of new offerings actually decreasing over the years, shareholders could potentially lose money if Facebook becomes a thing of the past.
"When AOL went public, it went up for a short period of time and then dropped like a rock. It's possible to lose a lot of money in IPOs," Haug said.
Shareholders will take a risk, but risk factors come with every investment.
Facebook founder Mark Zuckerberg will pocket $2 billion in this deal, making $1.11 a share.