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Should you 'like' Facebook's IPO?

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  • Description

    Social media giant hits stock market

  • Duration 3:22
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Years FaceBook start selling stock to the public today but at 38 dollars a share is this a Smart -- well let's ask personal finance expert.

-- given time Sarah joining catalyst for joining us the the big question for ordinary Joe -- investor should you buy -- not for the ordinary Joseph investor.

Here's the thing -- and everybody wants in we haven't seen this kind of excitement since Google went public back into thought 2004 a lot of frenzy a lot of -- Would be paying a premium well above the offering price of 38 -- there are risks involved.

Concerns about slowing growth concerns about study.

-- consistent revenue patterns all sorts of issues but everybody wants and this is the largest Internet IPO in history and one of the largest IPOs in general.

Right out there with these entitlement or so people and I get.

Yeah I did it so.

Did you say though that you should only get in on this if you have some money to play -- right you would put all your eggs in one basket specifically -- especially.

But the hot IPO like this -- because they have a spotty track record.

I mean look at Groupon write it shot up 11% on day one now it's down 50% since just abuse at this have to -- play money fund money.

Not your retirement money that your emergency fund money money you can actually afford to lose and I went more than 5% of your network into something like -- -- apps the crazy.

Yeah I also mean you say to have like you know only money that's not retirement you'd learn that many people who are -- -- for retirement or completely several of their kids' college rabbit emergency fund set aside and still have money.

Left to play with -- -- I want to play with you might consider it but I just set a price limit.

-- may -- -- it fifty or sixty whatever the case -- that's number some of the institutions are looking at.

And again.

The fund money the play money money you could afford.

To lose but set a price so your next important -- you want only limit orders here not market order exactly and also just take a look at the stock and make sure.

It fits into your portfolio as part of a diversified portfolio.

Don't just get in there because -- on FaceBook -- 900 million users are I mean.

Common sense yeah right right wait for the dust to settle on today's going to be crazy for crazy I mean.

Day one Internet IPOs have risen historically on average 34% of people are saying that this one.

Can go to sixty or even seventy dollars on day one so wait for the friendly to society different things just settle down a bit here.

You might even consider.

When he put a lock up period to expire.

It's only three months down the road that's the time period where investors are restricted from actually selling their shares so wait until after that fact.

More shares come to market the price could take a dip and it might be good entry point for people who are interest and yes that is a shorter 91 day -- appears shorter than usual six months 206 months is a standard right yeah they've shortened it I don't.

-- not too long to wait right dump the early all right I consider buying a ceremonial -- -- this idea too because if you're faced up and wanna buy one ceremony or share you can do that on sites like one share.

There are some other ones -- do it.

You get a stock certificate something that the brokerage firms don't have it give you can frame it can brag to your friends and hey you're in on the DL and if you think that once here is insignificant if you bought apple fifteen years at five dollars it would be working -- -- 600 arsenic so.

That's an idea for someone who wants to get in their FaceBook fans they like the stock they want any part of the height.

But there's not a whole lot of rest and -- only played a lot of great tips Vera Gibbons thanks as always in other right.

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