Daily Investment Tips

Although Facebook is still a private company investors have been able to buy shares of the company. Shares of Facebook trade on a private-company stock market. The market is known as Secondmarket.

According to an article I read in Techcrunch

SecondMarket is a private stock market with thinly traded shares where demand often outstrips supply. (By definition, private stock sales trade in an illiquid market)

The Article makes analysis of the latest valuation of facebook, as of june 2010

Shares of Facebook on private-company stock market SecondMarket are going through the roof right now. This week, Facebook shares traded on SecondMarket passed $50, giving Facebook a total market value of $25 billion, according to sources with access to the market. (SecondMarket itself does not disclose pricing or valuation of the private stocks it trades)

Facebook shares are available to investors via SecondMarket. If you want to buy into facebook before the IPOthen you may consider opening an account at SecondMarket. According to the site, Signing Up is free!

written by Constantine Njeru \\ tags: Buy Shares, Company Investors, Company Shares, Company Stock, Facebook, Illiquid Market, Investment Tip, Private Company, Private Stock, Private Stocks, Stock Market, Stock Sales, Stocks Shares

The four most expensive words in the English language are, ‘This time it’s different.

– Sir John Templeton

Whenever a a new bull market starts we all rush to participate in it. Investors continue to buy higher highs insisting the market will continue to rise higher and higher. The justification for this reasoning is that this time things are different but history shows that whatever goes up eventually comes down.

A perefect example was during the dot com bubble. Some grossly optimistic Economist even went as far as claiming that business cycle were dead and that America was poised on a permanent trend of prosperity but the dot com mania eventually came to an end like all other great bull market.

written by Constantine Njeru \\ tags: Business Cycle, Economist, English Language, Investment Tip, Investors, Justification, Prosperity, Rush, Sir John Templeton