Typically, stock traders purchase shares in large bundles, but Facebook’s upcoming initial public offering is attracting more than your typical stock trader -- and some of them just want a single share.
Facebook’s IPO “interests people who are not ordinarily interested in the stock market,” Rick Roman, the founder of GiveAShare told CNNMoney. “We’ve been getting people asking about it for a year.”
Websites that sell single shares of stock have been receiving a lot of inquiries about Facebook stock recently from users that are not usually attracted to IPOs.
Richard Martin, of FrameAStock, said his company believes Facebook’s IPO will attract many casual stock traders.
“About one out of 10 people on the planet have Facebook, so we’re betting it’s going to be pretty popular,” he said.
The last time he saw this much buzz around single shares was back in 2004 when Google went public, and before that, when Martha Stewart’s company went public in 1999.
People like to buy single shares of stock “if it’s a popular American company that’s well recognized,” Martin said. Some popular single shares include Disney and Coca-Cola.
Purchasing a single share normally costs around $40 more than the stock’s current trading price due to service fees charged by the trading website. And that doesn’t include the nice frame many single-share traders buy to display their stock certificate.
“People who are buying one share typically never sell it,” OneShare Chief Executive Lance Lee told CNNMoney. “For the underlying company, it shows true brand loyalty.”
Martin said individual stocks are often given as gifts, especially for graduations, weddings, births, christenings andMother’s Day.
And as far as Facebook’s IPO, Martin would suggest jumping in now, just like the people who bought single Apple shares for $5 back in the day that are now worth more than 100 times that.
“This is a great time for people to get in on the bottom level,” he said.
Original source: How to buy 1 share of Facebook stock