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Miscellaneous

The Fervor Over Facebook

Now that the fervor over Facebook’s stock IPO (initial public offering) has finally died down, let me assert that they nailed their stock price. The fact that people are being critical over it, suggests only one thing: greedy speculators.

If an IPO price offered is too high, the shares do not all sell (and the company doesn’t raise as many funds as they wanted). If they do manage to sell all the shares and the stock price plummets, then everyone feels they paid too much and were ripped off.

On the other hand, if the price offered is too low, then the stock quickly sells out and the price jumps up, sometimes quite a bit. But when this happens, the company doesn’t benefit from the higher price—they merely get the amount they planned on—but the stock speculators make out like bandits. Many expected Facebook shares to do just that, sell out quickly and then skyrocket. When that didn’t happen, the speculators missed the quick profit they wished for—and began complaining. This merely exposed their greed and the expectation of making a quick buck without really doing anything.

The fact that Facebook’s stock sold quickly and they hovered around the offered price, confirms it was neither too low nor too high, but just right. This was the right thing for Facebook and all its existing stockholders. Facebook earned all the money they expected to but didn’t leave anything on the table for greedy investors trying to make a quick buck.

Peter Lyle DeHaan, PhD, is an author, blogger, and publisher with over 30 years of writing and publishing experience. Check out his book The Successful Author for insider tips and insights.

Categories
Miscellaneous

Going Digital

In the May 4 issue of Information Week magazine, there is a great quote from Colin Powell. He said,

“I was born analog, was raised analog, and lived most of my life analog. I had to become digital over the last 20 years, and I’ve had to work hard at it because my business required it.”

I’ve never thought of it in those terms, but I can identify with that. I, too, was born analog and raised analog. However, I’ve spent half my life in a state of migration from analog to digital. I’d like to think that I’ve transitioned nicely. After all, I embrace the Internet, I blog, I have several websites, and my work not only revolves around cyberspace, but I use it as the primary means of conducting business.

However, before I become too comfortable patting myself on the back for my digital sophistication, I must admit that the allure of text messaging evades me and Twitter seems more like a novelty that a practical communication tool (see “Do You Tweet?“).

So perhaps I’m not a digital as I’d like to be.

Peter Lyle DeHaan, PhD, is an author, blogger, and publisher with over 30 years of writing and publishing experience. Check out his book The Successful Author for insider tips and insights.