facebook shares?

**Sean_Boy87** · 05-18-2012, 03:22 PM

whose clued up on this shares stuff... is it worth buying into or is it aload of bollix?

**Xonetacular** · 05-18-2012, 06:47 PM

Let me steal something from reddit that explains it better than I can

"Since no one else has bothered with a decent response, I'll give you some reasons why many think it's a bad idea.The problem with IPOs is that the prices aren't really a market price because there isn't really a market. Or not a market like most other stocks.
All the employees who were able to purchase shares, the big time VC's, the people who put together the deal all get shares at a greatly reduced price. There are also restrictions on when they can sell those shares.
After all the insiders and people who put the deal together, then the banks go to their favored clients who get first crack at the available shares. Remember, these aren't really on the open market yet. The only shares available are those made available.
Now all the indexes pile in. The funds who have to purchase because they need it to balance their total market return fund or whatever other financial product they sell.
They all get better pricing than you, and most of those groups have restrictions on when they can sell. Now all the hedge fund assholes who friends in the right places get preferential orders as well. This creates a small supply for the shares and often makes the shares appear more desirable.
By the time you actually get access, you are dependent on getting a decent price in the market. Sure you can buy shares but the most interested party and most invested in the success already have their shares and they already got them at a huge discount to your purchase price.
The problem is you are assuming there are bandwagon people who will arrive after you've already grabbed your shares. Why do you think you'll get shares before I'll get mine? I promise you won't because I have better access than you have. Because I have better access I am depending on you to be the one holding the bag.
Anytime you are going with a bagholder strategy, which is what you are employing, you always want to be in very early. As a retail investor you aren't in early, and you are gambling that others will arrive after you. That is a huge bet.
You mentioned Google. Google is a a very rare bird. Google had serious money making power before they went public which is unusual in an IPO. Google also made sure that your average joe could buy shares. Facebook isn't doing that.
If you are really confident scrape some money together and give it a shot."

http://www.reddit.com/r/stocks/comme...res_of/c4lf0z6

**Crowd3ontrol** · 05-18-2012, 11:17 PM

In my view I think people are just buying stocks so they can resell in a couple months when they get way over priced and dump all there shares to make a big chunk of cash.