Facebook IPO: Money Morning's Shah Gilani Reveals Possible "Friending" Strategy

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The Facebook IPO could be just around the corner, and here's how regular investors could get access to shares. In a Fox Business News interview Money Morning's Shah Gilani shows viewers - and Mark Zuckerberg - exactly how and why Facebook could be the first "friended" IPO.

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[Zucherberg] could perform a second act by using the social networking service to actually issue shares.

While the Facebook IPO – which has not been formally announced but is expected to come in 2012 – may be the most hotly anticipated IPO ever, Shah Gilani, editor of Money Morning and Capital Wave Forecast, a widely read subscription investment service, suggested on an interview with Fox Business News that unanticipated pressure be applied to founder Mark Zuckerberg to offer coveted IPO shares to Facebook users.

Gilani, who is also a former hedge fund manager and started his career as a market-maker on the Floor of the Chicago Board of Options Exchange, suggested that Mark Zuckerberg, the CEO and well-known billionaire, can and should offer Facebook IPO shares to the millions of Facebook users who made him rich. He also would like to see a movement to put pressure on Zuckerberg to offer a percentage of the IPO to the general public. Here’s what he said in his interview:

“Zuckerberg is the ‘king’ of social media and social networking and he considers himself a pioneer,” says Gilani. “He could actually perform a second act by using the social networking service to actually issue shares to the users of Facebook. He could set aside, say 20% of the Facebook IPO and offer it to Facebook users.”

Gilani suggested that since there won’t be enough shares to go around to meet the demand, a lottery might be the best way to get Facebook users in on the ground floor of a Facebook IPO.

See Gilani’s interview on Fox at http://www.foxbusiness.com.

About Shah Gilani:

Shah Gilani is the editor of trading research service, Capital Wave Forecast, and a contributing editor to Money Morning, The Money Map Report, Forbes and Market Watch. He is considered one of the world's foremost experts on the credit crisis. His published open letters to the White House, Congress and U.S. Treasury secretaries have outlined detailed alternative policy options that have been lauded by academics and legislators. Shah ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When the OEX (options on the Standard & Poor's 100) began trading on March 11, 1983, Gilani was in the pit as a market maker, and along with other traders popularized what later became known as the VIX (volatility index). Gilani started another hedge fund in 1999, which he ran until 2003, when he retired from the hedge fund world and opened a boutique private equity shop.

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