Comments on: Why is Facebook splitting its stock? http://blogs.reuters.com/felix-salmon/2010/10/01/why-is-facebook-splitting-its-stock/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: wes26 http://blogs.reuters.com/felix-salmon/2010/10/01/why-is-facebook-splitting-its-stock/comment-page-1/#comment-19723 Tue, 19 Oct 2010 21:48:47 +0000 http://blogs.reuters.com/felix-salmon/?p=5599#comment-19723 IntellectualExchange.com

Your stock is rising.

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By: warriorone http://blogs.reuters.com/felix-salmon/2010/10/01/why-is-facebook-splitting-its-stock/comment-page-1/#comment-19003 Sun, 03 Oct 2010 20:15:34 +0000 http://blogs.reuters.com/felix-salmon/?p=5599#comment-19003 Facebook are looking at going public after 2012. I think the reasons for the split is that the stock will be more marketable. 2] They will be able to spread the shares better if its split. To trade easily you need at least 100 shares.In general when shares of top companies are split the sum of their value increases. It becomes more accessable to a greater percentage of the investing public. Facebook has an agreement with current investors that it will seek a stock market listing .
News As It Breaks

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By: OnTheTimes http://blogs.reuters.com/felix-salmon/2010/10/01/why-is-facebook-splitting-its-stock/comment-page-1/#comment-18990 Sat, 02 Oct 2010 17:34:28 +0000 http://blogs.reuters.com/felix-salmon/?p=5599#comment-18990 A privately held company that is growing fast and needs to offer options to attract employees will split its shares so they can still offer large numbers of options to new employees. The later you join a start-up (if Facebook can be considered a start-up), the less percentage of the company you will get in shares. However, new, young employees rarely think in terms of percentage ownership, they only care about how many shares they are receiving. So if the company is worth 5x as much as it used to be, they would have to offer 1/5 the number of options they used to offer. Getting options for 1,000 shares (pre-split) doesn’t sound as good to the employee as 5,000 post-split shares. Even though most of these employees are engineers, they rarely take the time to think about thing like percentage of the company and market cap, they focus solely on absolute numbers.

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By: johnhhaskell http://blogs.reuters.com/felix-salmon/2010/10/01/why-is-facebook-splitting-its-stock/comment-page-1/#comment-18978 Sat, 02 Oct 2010 06:47:11 +0000 http://blogs.reuters.com/felix-salmon/?p=5599#comment-18978 Mark Zuckerberg: We are going to give you $100 million in stock. The stock is trading at $75 a share.
School Administrator: Wow! That’s… um, very many shares.
MZ: Yeah, a little over a million.
SA: Wow! How could you tell?!
MZ: Because 75 goes into a hundred about 1.3 times
SA: Really?!
MZ: Yeah.
SA: Could you go over that again?
MZ: OK forget it, we’ll just split the stock!!!

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