So it’s official. I now own a portion of Facebook, even if it’s a very tiny fraction of the some 240 million shares now on the market today, the initial public offering.
The opening price this morning was at $42 per share, but even before they went on the market, some wealthy investors were already jockeying for their own piece. In one extraordinary case:
From the Wall Street Journal:
Knight Capital Group, one of the biggest aggregators of US retail share trading, is seeing orders for Facebook come in from brokerage firm clients — including one from an investor willing to buy the stock even if it rises as high as $4,000, according to managing director Steve Kay. Orders like this is one of the reasons Nasdaq will wait until 11 a.m. or later to release Facebook stock for trading — the exchange and bank underwriters will wait until it’s clear that there is enough selling interest so that the stock doesn’t shoot to head-spinning levels straight away.
Should be an interesting ride. My favorite part of this story: CEO Zuckerberg’s base salary for 2012 is set to be $1. Yes, $1, per year, with benefits set by share price and success of the company. After all, this makes a lot of sense, as according to Zuckerberg, Facebook was created not as a company but as a social mission. I’m hoping that such social missions are used as examples of how corporations should be run!