How to play it: Facebook readies its IPO

Thu Feb 2, 2012 10:42am EST
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By David Randall

NEW YORK (Reuters) - Depending on who you ask, Facebook is either the best company to go public since Google or the hallmark of another tech bubble.

But no matter the ultimate fate of the broad-reaching social network, it's clear that investors will be scrambling to pick up shares when they get the chance. Facebook filed for a $5 billion initial public offering on Wednesday. If all goes smoothly, the actual IPO would follow a few months later.

Facebook shares are likely to pop on the first day of trading. Investors won't get the full benefit unless they are among the few privileged clients of underwriters, Morgan Stanley the lead among them, who can buy at the offer price.


See a video about Facebook IPO anticipation:


Still, investors who want a stake in the dominant social media company will have options.