Facebook Got Its IPO Exactly Right

With engineering precision, Facebook's stock price basically stayed the same on the day of its initial public offering, rising $0.23 per share. Why is that significant? It means Facebook got the most money possible for its existing investors. People should stop worrying about whether Co-Founder and Chief Executive Officer Mark Zuckerberg will take care of his new public investors. Instead, they should look forward to a repeat performance that will reward them too.

With engineering precision, Facebook’s stock price basically stayed the same on the day of its initial public offering, rising $0.23 per share. Why is that significant? It means Facebook got the most money possible for its existing investors. People should stop worrying about whether Co-Founder and Chief Executive Officer Mark Zuckerberg will take care of his new public investors. Instead, they should look forward to a repeat performance that will reward them too.

IPOs are priced to get the most money possible for existing investors.

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