Ordinary investors normally are relegated to the sidelines in red-hot IPOs, but there is speculation that Facebook may take steps to make some portion of its IPO shares available to small investors, according to the LA Times reports.
As Facebook Inc. files for what is likely to be a historic initial public offering of stock, a big question looms for its millions of loyal users. Will they be able to get in on what could be the hottest deal in years — or will they be left with their noses pressed against the glass, as individual investors typically are in coveted IPOs?
Ordinary investors normally are relegated to the sidelines in red-hot IPOs, with Wall Street brokerage firms that handle the deals parceling out shares to hedge funds, mutual funds and some ultra-wealthy individuals that generate big trading commissions.
Retail investors are left with little choice but to try to buy shares on the first day of trading. Getting a decent price before the stock rises tends to be next to impossible, and most investors miss out on the big first-day surge.
There is speculation, however, that Facebook may take steps to make some portion of its IPO shares available to small investors, partially as a public relations gesture that could generate goodwill….
Find out more at http://www.latimes.com/business/la-fi-0201-facebook-ipo-20120201,0,7558366.story
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