Buying one share of a stock will not lead to extensive financial gains or losses, but for those interested in a collectible from Facebook’s Friday initial public offering, the social network will issue paper stock certificates, according to its IPO filing.
CNNMoney reported that “investors” seeking to purchase a single Facebook share can turn to companies including GiveAShare.com and OneShare, adding that the trend has seen companies turn away from issuing paper shares, but Facebook said it would do so in its IPO filing with the Securities and Exchange Commission.
Buying one share is not cheap, however, as the $39 fee charged by both GiveAShare.com and OneShare, which covers purchasing the share and acquiring the certificate, could cost more than the share itself, with the IPO currently slated to be priced at $28 to $35 per share.
Both companies told CNNMoney they will begin offering Facebook shares as soon as trading commences, buying them at market price.
GiveAShare.com Founder Rick Roman told CNNMoney he was “surprised and delighted” when Facebook announced that it would issue paper certificates, saying that he usually updates stock prices on his site weekly, but he plans to adjust the price for Facebook several times Friday.
The company is also offering buyers a customized, larger frame to show off their Facebook shares, and Roman said users can personalize it with messages such as, “Mark Zuckerberg works for me! Official Facebook shareholder.”
Speaking about Facebook’s IPO, Roman told CNNMoney:
It interests people who are not ordinarily interested in the stock market. We’ve been getting people asking about it for a year. We think of ourselves as selling a product, not a stock. If the current share price is a few dollars higher than ours, we’ll eat the difference.
OneShare Chief Executive Officer Lance Lee told CNNMoney about three-quarters of his customers opt for fancier options in terms of framing their certificates, adding:
People who are buying one share typically never sell it. For the underlying company, it shows true brand loyalty.
However, should holders of a single Facebook share eventually decide to unload it, CNNMoney cautioned that they must deposit their shares with brokers and work through them, as well as surrendering their paper certificates. Roman spoke about Apple, which sold for $5 per share 15 years ago and closed trading Friday at $566.71:
I have to admit that we have been getting more calls and emails about people wanting to sell the Apple stock that they bought from us a long time ago. The interesting thing is that the certificate has collectible value, so it’s hard to give up.
Readers: Do you see any point to buying a single Facebook share just to get your hands on a paper stock certificate, or does it seem like more trouble than it’s worth?