Friday 18 May 2012

Facebook to begin trading on NASDAQ today.

FACEBOOK IPO
Facebook lists on NASDAQ today and trading commences once the IPO Auction Process has been completed, c15:15 GMT. At present, it is not confirmed whether the company will make the stock CREST eligible (Selftrade).

Just picked this up of Selftrade in case you weren't aware of a minor Initial Public Offer in a little known company called Facebook...
Yeh right, hold onto your hats for this one. 
Not for me (Facebook IPO. ) but it will be hugely interesting to watch what happens to Facebook over the days, weeks, and years to come.

Don't forget that prior to any purchase of US shares you would need to have signed, submitted and had actioned a W8-BEN form with your broker (Globally Diversified Technology, Growth, and Hedge portfolio!!! ).

19 May 2012 Update:

"FACEBOOK IPO - UPDATE
We are pleased to confirm that Facebook has now confirmed the stock will be CREST eligible.
Order may be placed online in the normal way via your account. You will need to have completed a W8-BEN prior to placing your order."(Selftrade)

Earlier post:

4 comments:

  1. What are the consequences of a share being or not being CREST eligible?

    ReplyDelete
    Replies
    1. 19 May 2012 Update:

      Hi,
      now confirmed as Crest eligible

      Regards MA

      "FACEBOOK IPO - UPDATE

      We are pleased to confirm that Facebook has now confirmed the stock will be CREST eligible.

      Order may be placed online in the normal way via your account. You will need to have completed a W8-BEN prior to placing your order."(Selftrade)

      Delete
  2. Hi,
    my limited understanding is that they would not then be eligible to be held within an electronic trading account or settled on the Crest electronic trading system (as most clients holdings and dealings are these days).
    It might even mean "paper" share certificate trading until they are eligible.
    Certainly the suggestion from such as Selftrade is that although they would initially exercise a clients purchase "limit" order, if the shares are subsequently confirmed as ineligible the suggestion is that they would then have to sell the holding, which might be prior to settlement.
    This is all at the clients risk and may realise a loss on the trade with no resulting share ownership.

    Best regards
    MA

    ReplyDelete
  3. Don't forget that prior to any purchase of US shares you would already need to have signed, submitted and had actioned a W8-BEN form with your broker.

    Best regards
    MA

    ReplyDelete