Posts Tagged ‘portfolio’

Facebook Goes Public

Written on February 1st, 2012 by Samanthano shouts

Facebook has gone public today and now has an IPO. An IPO, an initial public offering is a way that private companies go public which reveals the inner workings of the company including financial information. Francis Gaskins, President and Editor of IPODesktop.com describes this process by using a “real estate analogy,” stating that it’s like a house that was once private and not open to the public is now on the open market where all relevant information is disclosed. The company, now open to the public, is “followed by analysts” and monitored by the Securities & Exchange Commission (SEC).

A company must go public when there are more than 501 investors and worth more than $10 million dollars.

A company usually starts trading about eight to twelve weeks later—after announcing it’s IPO.

This company’s information is being offered to attract investors that want to support the company as a shareholder and hopefully make money as the company grows. To invest, you must already have an account with an investment firm. You can then go through the investment firm to make requests to buy or sell investments.

What does this mean to you?

For such a huge and popular company such as Facebook, there is a lot of buzz and interest—it’s considered to be a “hot IPO.” This means that a lot of investors are going to be initially interested which will result in a spike on investing with the company during the first days on the market.

The people that are going to really see an immediate return on investment—and the making of instant millionaires—will be the employees of Facebook that have shares in the company. Other investors that are able to invest larger amounts of money and acquire more stock will also be prevalent. Traditionally, these are the sectors of investors that are able to afford immediate investment and thus experience a greater or more immediate return on investment.

It has been said that Facebook is going to offer a large amount of stocks so that regular people that hope to invest in the company will also have an opportunity. Being that the United States is the only country that does not have laws against a particular criteria of classes of people that may invest, this may be a huge opportunity for even the average investor.

It has been reported that Facebook opened a $5 billion dollar IPO.

The thing is that with Facebook, everyone knows about it and may sink money in for the moment before “spreadsheet” analysis has been generated that shows actual growth. This could mean a lot of changes by next week. Traditionally, low-key and unknown companies are more attractive for investors because they will be able to buy at a low price and sell at a much higher price—this is a time proven strategy.

Experts are advising that investors that purchase on Facebook today should seek to trade sooner than later, and not hold on to the stock for too long. Gaskins stated that within the after-market, the selling point in the weeks after the initial announcement of an IPO, more analysis would become available to make a more strategic decision on investing.

It seems that only time will tell.

 

Resources:

Associated Press: http://www.ap.org

Yahoo! Finance – Breakout: http://www.finance.yahoo.com

 

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Diversifying your Portfolio

Written on August 26th, 2011 by credit2meno shouts

 

As the saying goes, you never want to place all of your eggs into one basic. With the economy being what it is these days, that includes your investments. In fact, if you haven’t diversified your portfolio, you are setting yourself up to lose money. Diversification means you have your funds in a variety of different investments instead of large chunks of it in just one or two investments.

 

When you diversify your portfolio, you are really increasing your chances of making money. There is a good chance that some of those investments will be profitable. At the same time, diversifying reduces your risk of losing money. Over the course of time, your profits should be more than your losses.

 

If the market is really tough, diversifying will help you to minimize the loss that you experience. Remember, investing can be risky so you want to really think about the level of risks you have out there too. If you aren’t going to retire for 20 or more years, then it is fine to have riskier investments.

 

However, if your retirement is less than 10 years away, you will want to become more conservative with your efforts. It makes sense to protect the funds have so that you don’t lose them. Perhaps you can allocate a small percentage of your investment funds into higher risk investments. Then if they make money, you have added a large sum to your retirement. If they don’t, you didn’t lose so much money that you are now worried about retirement.

 

If you will be retiring in five years or less, you want to invest in entities that are very low risk. That way you can continue to earn some interest on your nest egg. It may not be a lot of earnings at once, but it can definitely add up. You don’t want to be thinking you will have plenty of money for retirement and then discover you really don’t.

 

If you aren’t sure how to go about diversifying your portfolio, you will find plenty of help online. You can also talk to a financial planner as they can help you to get it all set up. Don’t wait until you are in a stressful situation with your finances. The market is simply too unpredictable at this point in time.

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