MGCR 331 Chapter 8: IS Chapter 8
14 Mar 2012
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Document Summary
Facebook was founded by a nineteen-year-old college sophomore and eventual dropout. It is currently the largest social network in the world, boasting more than four hundred million members and usage rates that would be the envy of most media companies. While revenue prospects remain sketchy, some reports have valued the firm at billion, based largely on an extrapolation of a microsoft stake. Short: short selling is an attempt to profit from a falling stock price. Short sellers sell shares they don"t own with an obligation of later repayment. They do so in the hope that the price of sold shares will fall. They then repay share debt with shares purchased at a lower price and pocket the difference (spread) between initial share price and repayment price. Facebook is gradually turning on features that allow it to leverage its massive user base to encroach on a wide swath of internet businesses.
