Leah-Lacie Posted July 27, 2012 Share Posted July 27, 2012 He owned Facebook He sold (some of) Facebook and was paid money. Real Money. He can do what he likes with that real money. He is rich. The people who bought shares in Facebook are now part-owners of the company. If he had sold all the shares of Facebook and if the shares subsequently became worthless, it wouldn't make any difference to him. - He's already got his money. If he kept some of the shares and if the value of those shares on the secondary market fell, then he - like any other shareholder - would take a loss if he sold the shares at that lower price. Neither he -nor any of the other shareholders - wold lose a penny until they sold the shares. Ahhh thank you! I think I read somewhere that he hadn't sold any of the bit of Facebook that he actually owned, as he didn't own it all to begin with? Not sure about that though. I just keep seeing people going on about him having all these billions, as facebook is worth this much. If all his money is tied up in a virtual company though, of course, as we have said above, it could lose its value totally, and he may be left with nothing. Maybe thats why hes been wise and sold some of the company just at the peak of its popularity before it started to lose money. Link to comment Share on other sites More sharing options...
FACEBOOK Posted July 27, 2012 Share Posted July 27, 2012 But is he, or is it all on paper? I know people who say they're millionaires, but its all tied up into a business or assets and they don't actually have any hard cash until they sell up The last thing you want in the bank is a lot of cash sitting around doing nothing. That's why they "tie" it up. Overall net worth, investments and borrowing ability is far more important than the amount of cash you can instantly access in your account. As for facebook, as others have said, it's value is in it's advertising platform and other revenues generated by online marketing. Facebook is a marketers dream, it can function as a search engine that allows marketers to target very specific niche demographics. Better still, most of the people on facebook are real and use their correct main email addresses and personal details so sales conversations are usually much higher than ordinary marketing such as seo tactics to rank highly on google or ppc. You can make $100's of dollars a day just posting ads on facebook to other peoples offers. Their back end marketing system is so easy to use and intuitive, you literally only need an offer and the ability to write a small ad and you can be in business for under $400 and a net connection which is why their daily revenues from ads are simply insane. Link to comment Share on other sites More sharing options...
Leah-Lacie Posted July 27, 2012 Share Posted July 27, 2012 The last thing you want in the bank is a lot of cash sitting around doing nothing. That's why they "tie" it up. Overall net worth, investments and borrowing ability is far more important than the amount of cash you can instantly access in your account. My ex boss. "I'm a millionaire. I'm loaded. My business is worth millions and I own a Porsche " It was, until he lost his contract with a major public transport company, and then he was worth nothing. Link to comment Share on other sites More sharing options...
FACEBOOK Posted July 27, 2012 Share Posted July 27, 2012 My ex boss. "I'm a millionaire. I'm loaded. My business is worth millions and I own a Porsche " It was, until he lost his contract with a major public transport company, and then he was worth nothing. Sounds like he just operated a risky business model and hadn't invested wisely, hard times hit and there wasn't a safety net, or the banks refused to lend to him, no insurance, whatever. Everyone of course is entitled to run their finances as they see fit and suitable to their own circumstances. Link to comment Share on other sites More sharing options...
Leah-Lacie Posted July 27, 2012 Share Posted July 27, 2012 Sounds like he just operated a risky business model and hadn't invested wisely, hard times hit and there wasn't a safety net, or the banks refused to lend to him, no insurance, whatever. Everyone of course is entitled to run their finances as they see fit and suitable to their own circumstances. By the way are we talking the site value here, or you?? If it is the latter... :love: Hello Link to comment Share on other sites More sharing options...
Cyclone Posted July 27, 2012 Share Posted July 27, 2012 The bulk of that figure comes from Facebook CEO Mark Zuckerberg, whose 443 million shares–after he sells off 30.2 million shares in the IPO–are worth $16.9 billion at $38 a share. This figure does not count Zuckerberg’s 60 million unexercised options. Zuckerberg, whose net worth was Forbes estimated at $17.5 billion on the World’s Billionaires List in March, may easily surpass his own high water mark if Facebook’s shares pop on Friday. If we assume that Facebook disappeared tomorrow and was worth ziltch. He sold off 30.2 million shares at $38/share. And he will have drawn dividens and salary from the company for the past 8 years. That's $1.1 billion dollars in cash, ignoring his income since he created the company and ignoring the stock and options he still holds. Link to comment Share on other sites More sharing options...
FACEBOOK Posted July 27, 2012 Share Posted July 27, 2012 By the way are we talking the site value here, or you?? If it is the latter... :love: Hello If it was me, how could I possibly take your seriously with such a poor grasp of finance. I suppose I could always send you on a course. But no, we are not talking about me, however if you do win £105,000,000 on the euromillions this evenings I absolutely ban you from leaving it all in the bank. Link to comment Share on other sites More sharing options...
Leah-Lacie Posted July 27, 2012 Share Posted July 27, 2012 If it was me, how could I possibly take your seriously with such a poor grasp of finance. I suppose I could always send you on a course. But no, we are not talking about me, however if you do win £105,000,000 on the euromillions this evenings I absolutely ban you from leaving it all in the bank. I would put it under the mattress Link to comment Share on other sites More sharing options...
FACEBOOK Posted July 27, 2012 Share Posted July 27, 2012 I would put it under the mattress You know, I fear that's exactly what you'd do. Link to comment Share on other sites More sharing options...
Leah-Lacie Posted July 27, 2012 Share Posted July 27, 2012 You know, I fear that's exactly what you'd do. In reality, I'd have spent it all in a matter of hours. Tying it all up in assets, as it were Link to comment Share on other sites More sharing options...
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