If an investor invested in Facebook stock and bought the shares on day of the IPO at the offer price

- Estimate the investor’s first day return. Give your comments on the first day return.

- Estimate the long-term performance of Facebook in the post-IPO period at the end of each financial year from the IPO date to 31 December 2014, that is, what is the investor’s holding period return since the day he/she bought the shares to the end of each financial year for the first three years after the IPO? Give your comments on the long-term performance of Facebook IPO

Answer rating: 100% (QA)

Estimated Return of Facebook IPO Day 1 Return Offer price 38 per share Opening price 83 per share Closing price 9425 per share Day 1 return calculatio... View the full answer