Facebook IPO

Today is my last day on my senior project. I had a meeting with Mr. Strand at American Research and Management. We discuss the new IPO (initial public offering) by Facebook. Mr. Strand recommends to his clients that they do not invest in share of a newly made public company as this involves high risk unlike that of a company a few months down the line in which market trends and reports have been produced to get a better idea on what to expect. However, some of his clients insisted that they have some shares. Each shareholder by law is entitled to a copy of the registration statement, this booklet is over 400 pages long lining out all the information a shareholder will need to know in terms of risk taking, financial records and projected investment ideas. Facebook is releasing 337,415,352 shares of common stock and 180,000,000 shares of its class A common stock onto the market. The difference between the stocks comes in the form of voting and conversion rights. The CEO, founder and Chairman, Mark Zuckerberg will have or have the ability to control about 57.3% of the voting power of the outstanding capital sock flowing the offering. The company currently has 901 million active monthly users, 3.2 billion likes and comments per day, 300 million photos uploaded each day and 125 billion friendship. This all enables Facebook to continue making money via there selective advertising, which companies will pay high premiums to have access to client data base and information regarding a target audience for their products and services.

            During this weekend I will be working on finishing off the financial planning portfolio to have a copy to show the audience next Friday at my presentation morning. I will also be making a PowerPoint presentation in order to give a visual aid to those who come to visit. Now I have finished my project I will be able to have a retrospective view on what I have gained and learnt out of my six weeks in order to produce a review for next Tuesday. I hope that a good amount of people will come to my presentation on Friday and learn that the world of finance is not as boring as some may think and hopefully they will be pleasantly surprised with what one can accomplish in a six week senior project.