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I never said that he did. I was referring to a speech he made when he claimed that it was 'cutting edge.'
It's not just tech stocks. There is a whole category of stocks that pay little or no dividend that are called GROWTH stocks. They can be in many businesses including banking, real estate, energy, etc. And for your information, Steve Jobs didn't invent the growth stock category.
I never said that he did. I was referring to a speech he made when he claimed that it was 'cutting edge.'
A stock's price is supposed to be the sum of the NPV of all future dividends (google "Gordon Growth Model" before you acuse me of making that up). The tech stocks CC is referring to never reach the stage where dividends provide the shareholder more returns than reinvesting earnings (since tech stocks are high growth), but their price is still reflective of the dividends the stock might yield once it is more mature and done growing, however far away that may be.
And your question wasn't what I called uninformed, your response to the answer I tried to give was. When companies have an IPO it's in order to raise capital for expansion/reinvestment. Those companies don't pay dividends when reinvesting produces high returns. This isn't something I'm saying to mimic CC, it's one of the most basic concepts in finance
supposed to be
Facebook Will Avoid Paying $16 Billion In Taxes After Going Public
As ThinkProgress has noted, Facebook’s initial public offering will help both CEO Mark Zuckerberg and the company itself avoid billions of dollars in taxes. With Facebook’s offering now in the books, as Bloomberg’s Paula Dwyer wrote, the company is set to officially save $16 billion in taxes by deducting the cost of stock options granted to owners and employees. “The tax windfall will be the largest ever claimed by a company for stock option awards,” Dwyer wrote. “Facebook is an American success story. Its ability to use a stock option loophole to zero out its U.S. tax bill, despite ample profits, makes no sense. It also isn’t fair to the rest of American taxpayers who will have to pay more because Facebook pays nothing,” said Sen. Carl Levin (D-MI).
http://thinkprogress.org/economy/201...billion-taxes/
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Those Corporate-Americans are exactly like Human-Americans.
Hmm...heard from a friend in the biz that a lot of those $42 buys being posted are NASDAQ still settling trades from it's totally ed up opening this morning. He said there may be a HUGE class action suit against them. A load of money apparently got lost today because brokers couldn't get trade confirmation.
I bought into the hype :/
hope I don't get burnt on Monday
That seems inevitable.
I might buy in after the fall and when these guy explain to shareholders how they plan on making astronomically increasing their income.
Certainly not a good day for the nasdaq.
A profit is a profit.I might buy a coke with the proceeds after the commissions.
My friend confirmed there was an unlimited buy order on the screen all day long to buy all shares offered at $38. One can only assume that it was placed by the underwriters.
I'm thinking the underwriters own a load of Facebook stock.
Fuzzy me and dok are both top of our class as finance guys and I can assure you he's right. Companies don't start paying dividends immediately after going public especially not Facebook in this case. The point of going public is to raise capital.
Any guesses on how Randolph and Mortimer did?
how many shares?
lmao you absolutely will. the underwriters knew that it wasn't worth nearly that much when they got themselves into this, they were relying on stupid people like you to go out and buy long enough for them to unload all their shares and it backfired. now that the cat is out of the bag, look for it to tank like a mofo.
So what will be Facebook's revenue stream aside from ads? I'm not buying the Facebook IPO hype. They'll probably blow so hard within the next 3 years.
obviously. it's human nature to get bored and go on to something else..facebook won't be around in 5 years
Or they'll try to stay in the game and morph to something else, and still fail.
Oh I get it. It's done to make money. I just think that speculating on nothing is silly even if it is how things are typically done nowadays. I am just not into style over substance and this IPO reeks of it.
Not much, I will prob unload it early Monday at a loss, but nothing too crazy unless it gaps down like a mother er.lmao you absolutely will. the underwriters knew that it wasn't worth nearly that much when they got themselves into this, they were relying on stupid people like you to go out and buy long enough for them to unload all their shares and it backfired. now that the cat is out of the bag, look for it to tank like a mofo.
Exactly, facebook's intrinsic value is nowhere near what they are trying to sell it at. And even if facebook was making that kind of money, which it's not, anyone with half a brain would question its ability to maintain such a status as social networking fads are cyclical.
Bout half a G
I'll prob lose about one hour of work, but money is money
You really think I'd be stupid enough to pour a ton into this?
anyone buying puts on monday?
from your postings on this site i honestly wouldn't have any clue, it wouldnt surprise me totally. you never know someone from their internet persona's so idk.
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