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Facebook Shares Get Sliced Into Derivatives as Value Surges
- joelhaus 16y agoSomeone is betting big against Facebook: [...]after talking to institutional investors who were having trouble finding a way to invest in Facebook. He expects to raise at least $100 million for his Facebook-specific fund. By creating derivatives of the stock, the investment firms are helping Facebook keep its shareholder count at 499 or less, the maximum number a company can have before it has to disclose results to the public. Something like this: Present Value $100mm = capital $20 = current price per share 5mm = # of derivitave shares held ----------------------------------------------------- Future Value Long Pos. = (5mm * expected price per share) Short Pos. = capital - (5mm * expected price per share) + fees