Scared of Facebook Shares? Wager on Friday’s Close (Chicago Tribune)


As the anticipated public offering of Facebook stock draws closer, a Reuters article published by the Chicago Tribune suggests investors have more than one way to seek a profit. They can choose to buy Facebook stock, or, as the story explains, they can choose to make a wager on the stock’s price.

According to the article, Intrade, an online prediction market, is offering contracts that offer investors the opportunity to bet on where the Facebook stock will close on its opening day. “Facebook’s experience could mirror what happened in prediction markets when Google Inc. went public in 2004,” Reuters writes, citing Associate Professor of Economics Eric Zitzewitz’s observation that “past history suggests some useful information in these markets.”

Read the full story, published 5/15/12 by Reuters via the Chicago Tribune

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