I'm Alex Villarreal with the VOA Special English Economics Report, from http://voaspecialenglish.com | http://facebook.com/voalearningenglish
Facebook is the world's biggest social network -- and the subject of the movie "The Social Network."The real Mark Zuckerberg and his friends at Harvard University launched the site in two thousand four. Facebook says it reached five hundred million users last July.Now, the American bank Goldman Sachs and the Russian company Digital Sky Technologies have friended Facebook. They are investing a total of five hundred million dollars in the company. The deal values Facebook at fifty billion dollars -- more than many publicly traded Internet companies. Goldman Sachs is expected to raise a billion and a half dollars more by selling shares of ownership in Facebook to rich investors. The plan does not include a public stock offering -- at least not right now. For now, Facebook would remain a private company -- meaning a company that does not sell shares to the public. The plan has brought new attention to the largely secretive world of private financing and the rules for private companies in the United States.The idea is that investors in public companies have protections that investors in private companies do not. The Securities and Exchange Commission says a private company must report financial information if it has more than five hundred shareholders. A new business, a startup company, is usually considered too risky for average investors. But a promising startup may find a small number of private investors, often known as "angels." These investors are willing to lose everything for a chance at big returns.Rikki Tahta has been involved in raising money for startups. He is now chairman of his own investment company, Covestor, with offices in New York and London.Mister Tahta compares the difference between public and private companies to the difference between marriage and dating. When people are dating, he says, there are understandings but few rules. In marriage, the rules are more clear and well-defined.In his opinion, the only real benefit for a private company is lower administrative and record-keeping costs. Yet he tells us Covestor remains a private company after a few years because it is still too risky for most investors.For VOA Special English I'm Alex Villarreal. You can comment on our programs and find transcripts and MP3s at voaspecialenglish.com. We're on Facebook and Twitter at VOA Learning English.
(Adapted from a radio program broadcast 07Jan2011)
Brokerage fee amount by transaction value 1.
Trade online and settle your trade to a CDIA or CommSec Margin Loan 2.
Trade online and settle into a bank account of your choice.
Share Trades over the Phone 3.
CommSec Share Packs online 4.
CommSec Share Packs over the phone 4.
Trades requiring settlement through a third party 6.
1 For GST rounding reasons, the final brokerage fee may vary from the stated or expected brokerage fee by a couple of cents.
4 Normal brokerage will apply when a stock acquired through CommSec Share Packs is subsequently sold.
5 Amount per share will be noted as brokerage on each confirmation issued. There will be no substitution should a stock have a trading halt placed on it.
6 Includes third party Margin Lending, and where the Commonwealth Bank exercises its rights under the loan Terms and Conditions.
Other fees may apply. Please see the CommSec Financial Services Guide.
Open a CommSec Share Trading Account.
Buy and sell shares using a CommSec Share Trading Account with our cash account - with it you can seamlessly settle trades, transact and earn interest.
Buy and sell shares using a CommSec Share Trading Account with your existing bank account.
Frequently asked questions.
Shares held with another broker.
For the transfer to be successful the name and address registered on your issuer holdings must match your CommSec account.
Your request will be completed within 72 hours.
Shares held with the share registry To transfer shares held with the share registry into your CommSec Trading Account you need to complete an Issuer Sponsored Holdings to CHESS Sponsorship Transfer Form.
Your request will be completed within approximately 48 to 72 hours of receipt.
When you have bought and sold shares on the same day and the next trading day, your payment may be partially or wholly offset. For more information refer to the New Client Guide.