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Old 05-22-12, 07:43 AM   #42
kraznyi_oktjabr
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Join Date: Mar 2010
Location: Republiken Finland
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Quote:
Originally Posted by Neal Stevens View Post
FB generates tons of money, how could it not? It has over 500 million active users.

Yes, investing in any business is a gamble. You are taking a chance that the company will succeed and create value and profit. Just imagine you and I are neighbors, we live in a town where there is no taxi service and a lot of people who don't own cars. I may make a study and show that a taxi service would be a valuable addition to the town. I ask you to help me buy 4 cars, hire drivers, and radio equipment. You invest an amount with an agreement to share in the profits. If I run the business well and I am right about the demand, we make money and the town has a taxi service. A gamble? Sure, so is life.
I understand this. What I don't like in situation (if information is correct) is that FB has no plans to pay dividends to investors. Therefore those who invest to company won't get any profit from their stocks unless they play speculation games.

Power in company is still strictly in its founders (and his friends) hands and with those stocks that have been sold in stock exhange has no power to overrule their decisions (as there is - at my knowledge - not enough stocks in sale to get past 50% without old owners support).

This may ofcourse change - or then not.
EDIT: From:
Quote:
Facebookin liikevaihto oli viime vuonna 3,7 miljardia dollaria. Yhtiö ei ole koskaan jakanut osinkoa. Se ei aio maksaa osinkoa myöskään pörssiyhtiönä.
Translation: Facebook's revenue in last year was $3,7B. Company has never paid dividend. Its not planning paying dividend as stockcompany either. (quick translation, finns jump in and correct)
EDIT#2: Just to make sure that I get understood correctly: Facebook has effectively stated, that its not going to share its profits with those who invest into company. Same as if I helped you to establish that taxi company and you wouldn't share profits with me.
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Last edited by kraznyi_oktjabr; 05-22-12 at 08:37 AM.
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