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Facebook’s IPO Already Happened – Several Months Ago on Secondmarket | Daniel Gross – Yahoo! Finance

Back in the day, when a hot company with scale and a lot of interest came along, there was nowhere for investors to express their enthusiasm about a company until the IPO officially happened. SecondMarket has changed that. The company manages periodic share-sale programs for privately held companies, and has emerged as an exchange where qualified investors — hedge funds, mutual funds, institutions, rich investors — can buy and sell pieces of privately held companies, including Facebook…

Thanks to SecondMarket, big-shot investors no longer have to wait until an IPO to express their enthusiasm about a company. And that means the froth and pop that used to take place exclusively on the NASDAQ or the NYSE in the opening trading days can now take place weeks or even months before the official IPO. That’s clearly what happened with Facebook.

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SecondMarket has constructed a great timeline on Facebook’s share price and market capitalization… The timeline shows Facebook’s price per share rising from $6.81 per share in February 2010, or a $15.66 billion valuation, to $21.32 per share, or $49.04 billion in December 2010 — a three-fold increase in the space of a year… In the space of two years, hundreds of transactions had pushed the value of Facebook up nearly seven-fold.

via Facebook’s IPO Already Happened – Several Months Ago on Secondmarket | Daniel Gross – Yahoo! Finance.

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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 


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