The latest Facebook initial public offering-related scoop comes from Reuters, who cites a single unnamed source saying that the social network will file for a $5 billion IPO on Wednesday. Instant analysis claims that Facebook will still be valued at anywhere between $75 and $100 million, but by floating a smaller than expected IPO price — everyone thought it was going to be $10 billion — the company might be able to jack up the share price.
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“Facebook is playing a psychological trick here, hoping to stir up demand for its stock by limiting supply,” claims Business Insider’s Nicolas Carlson. We have no idea what Facebook is doing, but that’s what makes this whole Wall Street game so much fun… For the very few investors who can get ahold of shares.
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