Question

Youtube shares are up. What do you do?

Answer 1

FaceBook Shares are up ? What do you do ?

First of all I would like to know few things  -

• Are we talking about Facebooks financial stocks ?

• Who am I ?

  • Am i investor ?

  • Am I a fb employee who has few vested FB stocks ?

  • Am I a fb Employee who is managng FB finances ?

  • Basically who am i and what i am supposed to do i.e what is my goal

Let us assume that i am a investor that is looking for quick returns on his investments 

Then i would like to know few other things like -

• Do i own these stocks ?

• What is the rate of return i am looking at ?

• In what time period i am looking to get my return ? and what is my risk appetite ?

Let us assume i dont own these stocks, i would have to buy them, and i am looking at a rate of return of 15% mom that should be realised in 3 months.

Then i would like to know a few other things -

• Why Fb only ? i.e

  • What is the rate of return expected from the fb stock ?

  • Is there some other stock that will give better returns as expected by me ?

  • Is there some other investment opportunity other than stock like bonds, lending etc which will give me the best rate of return ?

Thus based on different parameter i would choose best investment option, lets say its fb stock only.

Then i would i would have to arrange money to buy the stock , for arranging money to buy fb socks. I would look at 

• Do i have enough disposable income to buy it ?

• Or if  i have to borrow from someone ?

• If i have to borrow, i would look at the best borrowng rate, and compare it with my rate on return with my expected rate on return ?

Based on this decision and actions i would end up buying FB stocks.