Why Facebook Was More Valuable as a Private Company

Facebook was worth a lot more as a private company than it has been since going public. What do retail investors know that private investorsĀ didn’t?

Facebook shares have traded on secondary exchanges like SharesPost and SecondMarket since early 2009. Prior to the social network’s May 18, 2012, initial public offering, though, they were only available to accredited investors: banks and funds with assets over $5 million or individuals with a net worth above $1 million. Securities laws prevented small investors from buying Facebook shares prior to the IPO. As it turns out, the SEC was doing those investors a big favour.

Click here to

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.