How to Buy Facebook Stock

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Social networking has taken off in popularity, and the frontrunner at the moment is Facebook. According to CNN, Facebook currently has approximately 100 million users and continues to grow. Buying a piece of Facebook as an investment seems like a great idea, but you better have a lot of money and some contacts. Facebook is not currently a publicly traded company, although the investment community believes it will become a public company in the near future.

Buy Facebook stock
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Things You'll Need

  • Large amount of capital
  • Affiliation with a private equity firm or contacts with those who own private stock options
  • SEC designation of "accredited and sophisticated buyer"
Step 1

Research all available analytical data for Facebook. This may be difficult to find. Financial data will be required to establish current and future valuations on Facebook.

Research
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Step 2

Establish a value for each option contract or share of stock. It is important to establish value before entering into negotiations with the option holder.

Establish a value
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Step 3

Contact a person who currently holds stock options. This will either be a current employee of Facebook or a person affiliated with a private equity firm who owns Facebook stock or stock options.

Contact someone who holds stock options
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Step 4

Purchase the Facebook stock or stock options at the agreed-upon price.

Purchase the stock
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Tips & Warnings

  • As of July 2009, employees are permitted to sell their stock to certain private firms who may resell those stocks. Currently, this is still out of reach for most investors.
  • Buying stock in private companies is not for the part-time investor. Because of SEC rules, the amount of capital needed, and the needed ties to private equity firms, this will probably be too difficult for anybody who is not a financial professional.

References

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