SYDNEY, May 15, 2012 /PRNewswire/ --
Almost a year after fellow social networking company LinkedIn's public trading debut, Facebook has announced it will begin trading on May 18, 2012.
Those CFD trading with City Index Australia will be able to take a position and potentially profit from the company's future share price movement - regardless of whether Facebook's shares move up or down.
Trading CFDs is a high risk strategy and is not suitable for all investors and you may not hold an interest in the underlying asset. Ensure you fully understand the risks prior to placing a CFD trade.
LinkedIn Shares Doubled in 24-Hours
On May 19 2011, the social networking company LinkedIn - which was started a decade ago in one man's living room - debuted on the New York Stock Exchange.
In its first day of public trading, its share price rose 171%, closing at $94.25 (more than 109% above the $45 IPO price). In the days before the 19th, LinkedIn proposed a price range for the IPO; valued at just over $3 billion.
However, following its first day of trading the company was worth nearly $9 billion.
What to Expect from the Facebook IPO
LinkedIn was the first prominent US social networking company to publicly test investor demand for social media companies in the marketplace.
At the time, other companies under the umbrella - Facebook, Twitter and Groupon - were all expected to go public in the months following.
To some extent, this was correct; in November 2011, Groupon went public and saw its share price jump 56% at the start of trading.
However, what could be considered the two pinnacles of social networking - Facebook and Twitter - have yet to follow suit. Until now that is.
But what can we expect from Facebook and will LinkedIn and Groupon's debuts impact Facebook's IPO?
Trade CFDs on Facebook Shares
On May 18 when the US markets open, investors choosing to trade CFDs on Facebook shares will be able to take a position with City Index for only a small initial deposit - a small percentage of the underlying market's value.
As mentioned above - due to its leverage feature, you can trade on this major company for a small initial deposit.
However, leverage is a double edged sword meaning that the potential for both profits and losses is increased significantly and you will not own the underlying asset..
Ensure you fully understand the risks of CFD trading before you take a position.
About City Index Australia
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
City Index is a leading global provider of margined foreign exchange and CFD trading. As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. To learn more visit: http://www.cityindex.com.au/
SOURCE City Index Australia