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Online Brokers: 

Everyone is interested in investing in stocks! Remember to be careful and do your research before investing.

There is a high demand for the new facebood IPO (initial public offering)

Should mention that the first factor of guessing at the future trends of an industry is something that investors generally do not do well over the long term.

There is a tendency for investors to be overconfident in their own ability to forecast future trends. There have been numerous studies in the financial industry that show that most people believe that they can do better than the overall stock market, yet on average most do not. This is a reason that fundamentals are important in business decisions because, unlike forecasting the future, the numbers do not tend to lie. Although there are some cases of dishonest companies such as Enron in which one cannot trust the numbers, for the most part fundamentals are the component of research that is objective. Somehow, when it comes to buying stocks, I have noticed that many investors tend to skip these boring fundamentals.

Facebook IPO:

 Because of Facebook’s recent S-1 filing we can all have a look at much of Facebook’s fundamental information. The S-1 is required by the Securities and Exchange Commission to be filed for a business looking to go public. When this report was first made available on the SEC website, there were so many views that their website temporarily crashed. According to Facebook, it achieved revenue of roughly $3.7 billion in 2011 and their net income was a cool $1 billion. The revenue has about doubled each year since 2007. Clearly this is an impressive growth company with a lot to be excited about long term. The current offering is said to fetch Facebook $5 billion and could value the company at $100 billion. This is a hefty price tag given the company’s current revenue and earnings and I think that it would require sustained and significant growth to justify the price.

 To read more: visit Daniel Beckerman

List of online brokerage houses: A few links have been provided, simple google to locate the other links.

 National Bank Direct Brokerage

  TD Waterhouse

  QTrade Investor

  HSBC InvestDirect

 Questrade

 Scotia iTrade

 Tradefreedom

BMO InvestorLine

Remember:

1. Do your Research before investing. Visit SEDAR.com for Canadian Companies or EDGAR.com for US companies.

2. Invest only money that you can afford to lose.

Discussion Questions:

1. Should you consider investing in the Facebook IPO?

2. Will Facebook achieve a Market Capitalization as great as Google? ( Research Google)

3. Research Apple! Why is the company so successful? How many shares did you have to purchase, 5 years ago to be a millionaire today?

 

 

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