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Facebook’s Notice To Shareholders On Stock Split And Transfer Fees
- jamesaguilar 16y agoI wonder what the purpose of this move is? I know very little about this type of thing, but it would not surprise me if this meant any IPO is a long way off. It seems like they wouldn't bother making this rule otherwise. On the other hand, perhaps it is close and they want to save their employees the grief of selling now at a much lower price than they anticipate shortly in the future?
- versus 16y agoWow! Am I reading this correctly? 8.5 BILLION shares pre-IPO? Maybe I'm missing something but with that setup they're going to either wind up becoming an instant $100 billion market cap company ASAP or wind up a penny stock. I mean for a company that can only figure out how to make a billion revenue off of 500 million users, that just seems ridiculous. Even during the dot com craze something like that would have seemed odd.
- smakz 16y agoRemember kids, when interviewing at private companies which offer stock rewards, always get firm answers about percentage owned and dilution. Getting 1,000,000 Facebook shares might sound good on an offer letter but without knowing the percentage that could be worth 6$. Edited to remove comment about par value.
- secretasiandan 16y agoI don't think that word means what you think it means "Many common stocks issued today do not have par values; those that do (usually only in jurisdictions where par values are required by law) have extremely low par values (often the smallest unit of currency in circulation), for example a penny par value on a stock issued at USD$25/share." https://secure.wikimedia.org/wikipedia/en/wiki/Par_value https://secure.wikimedia.org/wikipedia/en/wiki/Par_value
- smakz 16y agoOf course you are right, but the point remains, it is important to understand the percentage of equity that you own/will own and how that will change with future dilution.
- whakojacko 16y agopar value != market price