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Facebook and the St. Petersburg Paradox.

Authors :
Zweig, Jason
Source :
Wall Street Journal - Eastern Edition. 2/4/2012, Vol. 259 Issue 28, pB1-B2. 2p.
Publication Year :
2012

Abstract

The article considers the initial public stock offering (IPO) of the Internet industry company Facebook Inc. A riddle known as the St. Petersburg Paradox is used to illustrate the difficulty faced by investors in attempting to forecast the future cash flow, earnings and growth of Facebook as well as the high market value of the firm as measured by the price of its IPO.

Details

Language :
English
ISSN :
00999660
Volume :
259
Issue :
28
Database :
Academic Search Index
Journal :
Wall Street Journal - Eastern Edition
Publication Type :
News
Accession number :
71114402