Danielpoemo
01-21-2017,
Facebook to remain private, after a $500 Million investment from Goldman Sachs and a Russian investor according to the article I've linked to. (http://finance.yahoo.com/news/Investments-place-value-of-apf-3677329905.html?x=0)
Both good and bad, in my opinion. Bad because all the people that use it can't invest in it. Good because it keeps him and the company's finances out of the spotlight. Facebook has filed seven "Notice to sell shares" Regulation D filings since 2005, (Facebook's SEC filings (http://www.sec.gov/cgi-bin/browse-edgar?company=Facebook&match=&CIK=&filenum=&State=&Country=&SIC=&owner=exclude&Find=Find+Companies&action=getcompany)) and will soon file its eighth for Goldman Sachs. The investment could be strictly for growth and to allow them to remain private; or the company could be in need of capital to stay functional until its advertising revenue builds up. Average investors will have to wait until Facebook does go public to understand the company's financial situation.
In the mean time; the good news for investors; is that you can still buy shares of the company through Sharespost.com (http://www.sharespost.com/companies/facebook); a website devoted to creating a secondary market for private equities. The catch is you must be an accredited investor; as rule 501 of Regulation D of the 1933 Securities Act dictates. It is commonly believed; certain individuals of high net worth are more likely to be able to understand the risks associated with purchasing private equity. Currently you must be part of a corporation with $5 Million in assets, be an individual with over $1 Million in assets, or make $200,000 a year to be considered an accredited investor. Unfortunately the average investor who works a 9-5 job and uses the social networking site to stay in touch with friends will have to wait a little longer before they can buy a few shares. When the time is appropriate Facebook is set up to be one of the hottest IPO's so far this century.
Both good and bad, in my opinion. Bad because all the people that use it can't invest in it. Good because it keeps him and the company's finances out of the spotlight. Facebook has filed seven "Notice to sell shares" Regulation D filings since 2005, (Facebook's SEC filings (http://www.sec.gov/cgi-bin/browse-edgar?company=Facebook&match=&CIK=&filenum=&State=&Country=&SIC=&owner=exclude&Find=Find+Companies&action=getcompany)) and will soon file its eighth for Goldman Sachs. The investment could be strictly for growth and to allow them to remain private; or the company could be in need of capital to stay functional until its advertising revenue builds up. Average investors will have to wait until Facebook does go public to understand the company's financial situation.
In the mean time; the good news for investors; is that you can still buy shares of the company through Sharespost.com (http://www.sharespost.com/companies/facebook); a website devoted to creating a secondary market for private equities. The catch is you must be an accredited investor; as rule 501 of Regulation D of the 1933 Securities Act dictates. It is commonly believed; certain individuals of high net worth are more likely to be able to understand the risks associated with purchasing private equity. Currently you must be part of a corporation with $5 Million in assets, be an individual with over $1 Million in assets, or make $200,000 a year to be considered an accredited investor. Unfortunately the average investor who works a 9-5 job and uses the social networking site to stay in touch with friends will have to wait a little longer before they can buy a few shares. When the time is appropriate Facebook is set up to be one of the hottest IPO's so far this century.