What Does it Mean to Include Facebook in the Stock Market?

NASDAQ Hosts Facebook

As you have heard all the news that the Facebook company of IPO will be out, and this IPO is one of the most important processes that took place in the history of the U.S. financial markets in particular and the world in general.

The Company will be 421 million shares at $ 38 for one, which makes the value of the company's market capitalization $ 104 billion, which is higher than the value of Amazon and McDonald's and Walt Disney and the highest value offering for IT company in history and the third highest value of the IPO at all for a company in the United States after Visa and General Motors.

I'll explain in this article some of the concepts about the stock market and to facilitate the delivery of non-professionals.

The beginning of the transfer of the stock market is a market, just like any other market .. there are seller and buyer and goods .. Company that comes its kind "contribution" to sell its shares in ... The buyer comes and pays the price per share (Item).

What does it mean a joint-stock company? Means that the company's capital is divided into shares, each named share. It refers to people's contribution to the financing and management of the company .. Hence the name shares share

What does it mean public offering? Means that the company put part of the whole capital or for sale to the general public (IPO).

What does it mean market value? What is the value of the company in the market today, which is the share price multiplied by the number of shares the company market. This value changes daily according to price change of the share.

Why NASDAQ? America has several exchanges, each with its own specialty so to speak. Completely such as markets .. Where the car market in place and vegetables in the market place and the real estate market in the place of gold in place .. We do not find markets selling everything with each .. And the NASDAQ market is concerned only technological companies, ie those companies related in one way or another in the field of technology in general, whether or cellular communications networks or servers and other Internet sites.

What does the symbol FB on the NASDAQ? It is simply the arrow icon to distinguish it from hundreds of other shares, whereas every shop in the market trade name puts it in the interface to distinguish it from the rest, the stock also has symbols is usually two-letter or three derived of the name of the company, so do not put the full name of the company, especially if it's a long .

In America, there are several forms of stock, in the case of Facebook, for example, shares classified under the category of (A), which gives the owner the share has one vote only, while giving a class (B) ten votes. Of course, each with its price and the rights and duties are different.

And shareholders (buyers of shares) controlled on the management of the company by voting on key decisions which, in the annual meeting which will be held for them and his name (AGM), so whenever you have a contributor to a greater number of shares shall be to have more votes thus the ability to control the company more.

But don not be happy on yourself and think you can buy Facebook whatever you purchased shares, because before only 15% of the company's capital, that Mark except still retains to 57.3 percent of the stock, then still the owner of the company one way or another, where the largest share of the arrow back to him.

the market that are sold shares of the company for the first time, is called "primary market", but what if you cannot buy on the first time? Well, you should go to the NASDAQ and place order for looking you order on the request of sale in line with the price that puts the transaction takes place, this market is called "secondary market" and here is vendor stock is shareholder discrimination on the primary market where the seller arrow is exporting company has .

But hey? .. Is there a possibility that I could not purchase the first time? Of course, because the number of shares offered for sale is limited, and priority is usually to small investors .. Any process is called privatization, whereby gets asked purchase a large number on the part of the amount requested, while getting shareholder who requested purchase a small number of stocks on the entire amount requested by, and in this way justice is done fairly so that everyone could get a stock The request to buy a very small number of shares may not request and performs according to the allocation mechanism used.

Finally .. There is no doubt that the introduction of technology company started from a room in a student dormitory to NASDAQ and reach a market value for More hundred billion dollars, indicating exactly that projects the Internet is not just a job or games teenagers, but projects are successful business just like other projects and sometimes larger ones even.