Dangers of Buying into the Facebook IPO

If you keep up with financial news, you have most likely heard or read about the impending Facebook IPO. Numerous news outlets have been releasing small bits of information here and there with most believing the Facebook IPO could come in May. While there is a lot of hype currently within the social networking and tech space, there are still many dangers with any stock IPO. Facebook stock will most likely be very similar to Google’s IPO where the was a lot of hype surrounding how and when the company will go public. When Facebook decides to go public, it must release much of its financial information to the SEC. These documents will be scrutinized and there may be some red flags that jump out for new investors. The social networking giant should be treated no different than any other company about to go public. Proper research needs to be done and understood before making an investment.