Facebook, the largest Social networking site in the whole world is not yet public, but that doesn’t means that the company doesn’t have shares in the public. If you want you can still own the shares of facebook on SecondaryMarket, a platform for buying and selling private company stock. In recent times due to the hype of the Facebook IPO, share of the company just kept going up to be around $72- $76 on sharepost., which currently values the company at $33.5 billion.
As any other growing company, when its share prices rise, announced a stock split in order to give larger stock grants to current and prospective employees. Facebook will split shares 5 for 1, but the split doesn’t change the actual value of these grants.
Spokesman Larry Yu says the split made sense as Facebook’s valuation has grown. The split brings Facebook shares’ value closer to what might be expected for a privately held company, he says
At the same time news of the stock split comes on the same day that The “Social Network,” a not-entirely-flattering film about the creation of Facebook from a Harvard dorm room in 2004, opens in theaters across the United States.