The Facebook IPO hasn't just sent a jolt of excitement through Silicon Valley, there are many average individual investors who are also thrilled. NPR's Sonari Glinton has more.
SONARI GLINTON, BYLINE: All right. It's a little after 9:30 on Friday. The bell just rang on the NASDAQ, and I'm gonna check in with some regular investors. I'm gonna start with Nelly Sai-Palm. She's a student at the University of Chicago's Booth School of Business, and I'm going to give her a call.
Don't worry if you missed out on Facebook's initial public offering. Chances are, if you own shares in a broad-based index fund, you'll be holding onto some Facebook soon enough.
Facebook is such a huge offering -– with an initial market capitalization of more than $100 billion, it instantly becomes one of the 25 largest "cap" stocks — that it could have a distorting effect on some funds, at least in the short term.
Mark Zuckerberg is, among many other things, the highest-profile taxpayer on the planet today.
After today's Facebook IPO, Zuckerberg will owe nearly $200 million in California state taxes alone. That's "among the largest tax liabilities that a single individual has ever paid at a given point in time," says Jason Sisney of the California State Budget Legislative Analyst's Office.
Zuckerberg's profits will be taxed at a 10% rate in California. That's a much higher rate than in many other states.
Steve Henn talks with Steve Inskeep on 'Morning Edition'
Facebook's much-publicized first sale of stock to the public started with a bang late this morning as the price per share jumped. But though the volume of shares sold was a record for an initial public offering, the stock's price gave up its gains as the day continued.
By the end of trading in the U.S., Facebook had settled right at the $38 initial offering price that had been set before shares went on sale.
When Facebook makes its initial public offering Friday on the NASDAQ, the stock will be priced at $38 per share, a price that's expected to bring in between $16 billion and $18.4 billion to the company. CNBC reports:
"[The price makes] it one of the most lucrative offerings the Street has ever seen. With that valuation taken into consideration, Facebook goes public with the highest valuation — in the $100 billion range — of any company on record at the time of its IPO."