How to Buy Facebook Stock


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.

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"
Buy Facebook stock
Buy Facebook stock (Image: Spencer Platt/Getty Images News/Getty Images)

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 (Image: Jupiterimages, Creatas Images/Creatas/Getty Images)

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
Establish a value (Image: Jupiterimages/ Images)

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
Contact someone who holds stock options (Image: Photodisc/Photodisc/Getty Images)

Step 4

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

Purchase the stock
Purchase the stock (Image: Comstock/Comstock/Getty Images)

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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.


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