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05-20-2012, 02:45 PM
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#1 |
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Member (9 bit)
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Is Facebook’s IPO an exit strategy?
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05-20-2012, 03:37 PM
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#2 |
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I agree with the article 100%.
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05-20-2012, 05:05 PM
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#3 |
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Techphile.
Join Date: Nov 2003
Location: San Francisco Bay
Posts: 6,634
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Without getting into the legal reasons, Facebook had to go public. It is not any sort of conspiracy as to why they did.
Otherwise, I am pretty much in agreement with the author. When the required 30 days is up, I might short FB. http://www.google.com/finance?q=fb
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Asus P8P67 WS Revolution | Intel 2600K @ 4.7 GHz | Win 7 Pro 64 |8 gigs Corsair 1600 | Two Diamond 6990's in Crossfire| Corsair AX1200 | Thermalright Silver Arrow | Western Digital Black 2TB 64 meg cache | Lian-Li PC-A71B | Logitec Z-5500 | Three Asus 26" VW266H monitors running under Eyefinity | Last edited by David M; 05-20-2012 at 05:08 PM. |
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05-21-2012, 08:19 AM
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#4 | |
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Member (9 bit)
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Quote:
Sen. Carl Levin, D-Mich., has been arguing against a tax loophole that Facebook's IPO creates for the company. In the release of his Senate floor speech on the his website, Carl Levin - United States Senator for Michigan: Newsroom - Press Releases the senator details how the company can _legally_ avoid paying taxes for years, leaving Facebook with an estimated $3 Billion tax break.According to Levin, the law permits Facebook to value their stock options at six cents per share, which would appear in the company's books. However, at a later date they can file tax returns claiming that the prior options cost them the $38 a share. The company can then _legally_ take a tax deduction for the larger amount. |
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05-21-2012, 09:29 AM
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#5 |
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Techphile.
Join Date: Nov 2003
Location: San Francisco Bay
Posts: 6,634
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What one calls a tax loophole another might call a tax break. It's all a matter of perspective. Is the mortgage deduction a loophole or a break? That probably depends on whether you pay rent or a mortgage, right?
Although a tax loophole is a nice incentive, once a company gets so large and has a certain number of private investors, it has to go public. The reason for the law is to protect the investors. Publicly traded firms have higher auditing and reporting standards than do private companies, including higher Sarbanes-Oxley related reports to the SEC, IRS and other authorities, including the investors themselves. Sarbanes Last edited by David M; 05-21-2012 at 09:35 AM. |
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05-22-2012, 06:26 AM
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#6 |
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I have a sister who lives in eastern Pennsylvania and it's nice to share pictures, videos and comments in what is happening during the week. I think of Facebook as a live blog that is shared to your friends. I paired down my friends list down and probably should bring down some more, but I look it at it this way. If you don't want to read or see my posts then either ignore me or unfriend me, it won't hurt my feelings. If you hate Facebook then don't join, it's that simple. Will Facebook go away? Only time will till tell, but I like this quote - ""The rumors of my death have been greatly exaggerated""
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05-22-2012, 08:24 AM
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#7 |
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Member (9 bit)
Join Date: Dec 2011
Location: Ft Lauderdale, Florida, US
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Afraid I'm going to have to side with Senator Carl Levin on this one.
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05-22-2012, 02:02 PM
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#8 |
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As a keen investor commented to me many years ago about some seriously dodgy stock " I wouldn't buy it with stolen money".
Facebook shares: Stock price falls ANOTHER 9% from Monday's close | Mail Online
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05-23-2012, 09:15 AM
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#9 |
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Member (8 bit)
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Location: South Wales
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05-23-2012, 09:24 AM
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#10 |
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Looks like a few people might get their fingers burned.
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