Spoiler alert… despite your enthusiasm, scooping up Facebook shares may not be so easy for the general public to acquire at the offer price. Associated Press writer Dave Carpenter sums it up best, but the gist is simple – it’s who you know or how much money you have. In other words, if you’re not friends with Mark Zuckerberg, one of his early investors or one of their preferred clients, you better have a brokerage account with anywhere from $100,000 to $250,000 already deposited and host of recent trades to go with that portfolio.

How an IPO works…
Bummer right? This kind of exclusivity seems to fly in the face of what is inherent in the phrase ‘initial public offering’. So how does it actually work? IPO’s are offered by private companies for a number of different reasons, the most popular of which are raising capital for expansion or resolving a poor cash flow issue. In Facebook’s case, they have neither of these problems. Instead Mr. Zuckerberg’s purported motivation is to bring about a long awaited payoff for many Facebook employees. After the IPO is finalized, many of them will become millionaires.

So before the actual first day of trading occurs for the newly dubbed FB stock, Facebook and its underwriters (the investment banks that have been hired and charged with evaluating, pricing and marketing the Facebook stock) go on a presentation roadshow to help attract big investors. This is why ‘Johnny Investor’ is rarely invited to this part of the initial sale of the stock, which is conducted via auction prior to the first day of actual trading.

Do I want Facebook shares and if so… how do I get them?
This is complicated so we will take the second part first. To buy shares of Facebook you have to open an account with a brokerage firm, wait for trading to begin and then instruct your account manager to buy the shares. You can do this yourself with popular self-made investor tools like ETrade.

The question of whether or not Facebook is a good investment is up for serious debate. Carpenter lays out some of the pros and cons in his piece and the video we included should shed a little light on the subject. At first glance you may think to yourself how could I go wrong buying stock in such a profitable company. However, the question isn’t about profit, it’s about growth potential. How much will Facebook grow after I buy my shares? This is a more challenging question. Facebook revenue is largely generated by Facebook ads, which recently have come under fire for not being as effective as advertised. Furthermore, while Facebook users account for nearly 15 percent of the global population, new user acquisition has slowed considerably.

It’s not all bad news. It is a safe bet to say that Facebook will continue growing. This writer has incredible faith in their ability to continue driving social media innovation and creativity – never a bad investment in any industry. Talk to a broker, a friend who is in investment banking and see what they think, but my final piece of advice would be to wait for the IPO to launch and the rollercoaster of initial expectations and frenzied trading to die down before jumping in feet first.

Facebook IPO – Not as Public as You Think was originally featured on Quizzle Wire

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If your friends are struggling financially, here are some ideas for how you can help:

Don’t give them money: If one of your friends comes to you asking for financial help, it can be tempting to give them money. But as “Eat, Pray, Love” author Elizabeth Gilbert discovered, sometimes too much financial generosity between friends can be a bad thing. Friendships can all too often be damaged when money comes into the picture. Giving money to friends can create uncomfortable feelings of obligation, resentment, or an unwelcome power imbalance in the relationship.

Don’t co-sign on a loan: Many people might be tempted to help their friends by co-signing on a loan, making it possible for the friend to borrow money to buy a car or pay off debt. This is a well meaning but all-too-common money mistake. If you co-sign on a loan, no matter how much you trust your friend and no matter how sincere they are in wanting to repay the loan, the truth is that you are taking a big risk. As a co-signer on the loan, you are responsible for paying it back if your friend cannot make the payments. You might find that co-signing on a loan leads to a lot of lost money as well as a lost friendship.

Do give them your time: Instead of giving money to your friends, give them your time, attention and support. Have your friends over for dinner. Offer ideas and encouragement. Help them find supportive resources like Consumer Credit Counseling. If your friend needs to find a new job, offer to introduce them to helpful new connections from your professional network. Help them get ideas for helpful tools to set a budget, improve their credit and create a stronger financial foundation.

Do encourage them to look for the root cause: Have a conversation with your friend about what might be causing their financial problems. Of course, if someone has lost a job, the answer is easy – but often when people have financial problems there is a deeper, underlying cause that is limiting their ability to manage their personal finances. Do they have a lack of motivation? Are they depressed? Are they spending too much because they’re trying to “keep up with the Joneses” and live a lifestyle that they can’t afford and don’t even want? Can they simplify their life and drastically cut their spending? Do they need career counseling to find a new career path that is more fulfilling and more lucrative? What is holding them back from financial success?

Often when people are having financial problems they feel isolated and ashamed. Make it clear to your friend that you care about them and you want to help. But make sure you help in the right way. When people are in financial trouble, getting a loan from friends might do more harm than good. Friends can often help most by helping get their friends connected to supportive resources, new ideas, and helping their friends come out of the financial difficulties feeling stronger and more empowered than ever.

How to Help a Friend with Financial Problems was originally featured on Quizzle Wire

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I won’t burden you with some wild-eyed apocalyptic vision of world finance because it’s a Friday and the sun is shining. What I will do is give everyone a chance to watch the greatest explanation of what credit default swaps actually are, and how they really work.  By the way, the Quizzologists love Khan Academy.

JP Morgan Sends Investors to the Mattresses was originally featured on Quizzle Wire

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President Obama’s, until very recent, opposition to gay marriage is a blue ribbon example of emotions driving policy making decisions. The same goes for those voters in North Carolina. The word marriage is something wholly inseparable from our emotional constitutions. It involves the ephemeral and indescribable feeling of love, at least it should, and pragmatism gets tossed out the window when we discuss matters of the heart. The same holds true for opponents of the ban, their philosophical foundation rocked by the notion that any government policy would prevent someone from loving another person. And this is where the same-sex marriage debate gets mired in a quicksand pit of its own making.

To this writer, from a purely pragmatic perspective, the gay marriage issue is a financial issue. Were you to, forgive the pun, but divorce the word marriage from the debate and start passing pieces of legislation that allowed gay couples to file joint tax returns, make health care based decisions for one another, buy a house together, etc… I don’t believe the voting public would rally around an opposition to those things. Toss the word marriage in there and the situation goes nuclear, pushing everyone on either side of the debate to an emotional DEFCON 1.

The fact of the matter is, marriage is a religious, not public policy term. The government’s use of the term marriage is to define the financial situation of taxpayers, hence the term ‘common law marriage’ applied to live-in heterosexual couples who for all intents and purposes are ‘married’ but haven’t taken vows, knelt in a church or engaged in the chicken dance in front of family and friends over cooling plates of prime rib and empty cocktail glasses. Culture, not government defines marriage. We would all do well to remember this in an effort to tamp down the rhetoric. But, it’s an election year so who am I kidding.

In the world of your personal finances, cold hard rationalizations are what are going to keep you secure and financially safe. We don’t invest in company’s because we like the name, or give our friends $10,000 because they are our friends and they think they’ve invented the next Shamwow in their garage. You don’t buy a house you can’t afford because the window treatments are pretty and the tire swing reminds you of grandma’s farm. You may want to, but you don’t.

Now for the payoff as I graciously thank you for your attention during my diatribe. With a housing market still plump with quality, cost-friendly property’s, many people are seizing this moment to jump into the home owning game. But all this talk of marriage got me thinking, what if you’re not and you want to buy a house with someone, anyone, that you’re not joined to in financial government sanctioned matrimony. Can you get the same tax benefits, protections?

We say it over and over on the Quizzle Wire, but reality is repetition you’ve finally stopped ignoring. If you want to buy a house, are even casually thinking about it, check your credit. Too often first time, and second time for that matter, homebuyers realize all too late that their credit needs improvement to secure a sensible home loan. Credit scores can improve, but it takes time and discipline.

So if you want to buy a house with a partner, check your credit and then watch this video before you sit down to discuss this with you’re potential co-buyer. And remember, love and money – like emotions and public policy – never mix.

Mixed Emotions – Finance, Obama, Gay Marriage and Quicksand was originally featured on Quizzle Wire

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Markets React
The Euro hit a three month low against the dollar Monday, a definite reaction to anti-austerity sentiment permeating elections in both France and Greece. With Spain and the UK, according to many economists, slipping back into recession, financial institutions see the Eurozone’s debt management efforts in serious jeopardy after Greek voters backed politicians who oppose the recent bailout package that pulled Greece back from the brink of economic collapse.

Why Does this Matter…
Weathering tough times in the States, Americans may find it hard to rationalize worrying over economies and governments in which we have no say. Despite our appropriately provincial attitude, we do recognize that in a global economy the efforts and policies pushed to curb over-zealous spending in other countries does have an effect on the American economy. Unstable European markets have serious effects on financial markets and subsequent effects on the American economy. From multinational companies to big U.S. exporters and our banks, all are tethered to interests in the European economy. Like our financial crisis swept across Europe in 2008, the reverse is as likely to happen if our Continental friends can’t get their debt in order.

Not Out of the Woods Yet
From a personal finance perspective, it is still a good time to be saving, not spending. While American consumer confidence is on the rise and was at the heart of a spending increase during the first quarter of this year, rough seas still lie ahead and the Quizzologists are still recommending protecting yourself against the volatility of global markets. The first step toward protecting yourself is getting a clearer understanding of your own debt to income ratio, the quality of your credit and an honest estimate of your cash flow. Quizzle.com is the only place on the web that offers a totally free credit report and score, giving you the information you need to master your finances for free, then offering you tools and suggestions on how you may be able to improve your credit. Optimism is always good and spending grows our economy, but in uncertain times it is best to protect yourself, your family and your finances from unforeseen challenges.

Austerity – The New Dirty Word was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

Are you trying to improve your credit score? Whether you want to buy a car, qualify for a home loan or get a better interest rate on your credit cards, improving your credit score is one of the best ways to save money by borrowing more cheaply.

If you have a higher credit score, you can qualify for lower interest rates and more favorable payment terms, often saving you thousands of dollars over the course of your life as a borrower.

Credit scores can be mysterious, and many people wonder “what is the best way to improve my credit score?” Quizzle will give you a free credit report and show you your credit score, and with our Credit Improvement Program you can be on your way to better credit and bigger savings.

Here are a few Quizzle personal finance articles about improving your credit score:

• How to build credit from no credit in 6 easy steps
• What to do if you miss a credit card payment
• Closing accounts without scarring your credit
• 6 steps to spring cleaning for your credit
• Are you getting caught by these balance transfer traps
• Will paying off debt instantly improve my credit?

Quizzle Weekend Roundup: Credit Improvement was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

The 2012 Kentucky Derby is Sunday, May 5. While millions of TV viewers will watch to see who wins the race, there are also some fun insights and lessons that we can learn about personal finance from the “The Most Exciting Two Minutes in Sports.”

What can the Kentucky Derby teach us about personal finance?

A lot can change in an instant: The Kentucky Derby is a 1.2 mile race, but the winner is determined by constant shifting of positions and delicate maneuvers throughout each turn of the track. One wrong move by a horse or its jockey, and one of the competitors can gain a tiny advantage that becomes a lasting lead. In the same way, your personal finances can change in a short amount of time – if you get in a car accident, lose your job, suffer an illness or sustain an injury, you can quickly find yourself in financial trouble unless you’ve planned to manage those risks. Protect yourself from quickly falling behind in the race toward your financial goals by buying insurance (car insurance, health insurance and disability insurance), and make sure you’ve saved up an emergency fund.

Appearances can be deceiving: The horse that wins the Kentucky Derby is usually not “the favorite.” The fanciest looking thoroughbreds with the richest pedigrees and the most high-priced trainers don’t always win a the Derby. Instead, sometimes there is a long shot horse that comes from out of nowhere to defy expectations and shock the world by winning the race. (In 2009, Mine That Bird won the Kentucky Derby with 50-1 odds.)

In the world of personal finance, appearances are not always what they seem. People who drive the nicest cars and live in the fanciest houses aren’t necessarily in the best financial shape – they are often just living beyond their means by taking on bigger debts. Don’t worry about “keeping up with the Joneses.” The safest bet for financial success is to focus on living within your means.

Run your own race: The Kentucky Derby is a highly competitive race, but fortunately, personal finance is not a race. True financial success isn’t about “doing better” than other people around you; instead it’s about doing better for yourself and for your family. Good personal financial management is a lifelong practice of trying to live within your means, save money, and spend smarter. The only person you’re trying to “beat” is you – by continually getting better at managing money, paying off debt, and living with financial freedom to spend your life with the people you love, doing the things you love most.

The Kentucky Derby is a truly stirring, exciting sports event, but we can all be grateful that we have a lifetime to get better at managing our personal finances, and not just a single 2 minute lap around the track.

A Kentucky Derby Personal Finance Lesson was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

That’s the kind of joy the folks at Sotheby’s enjoyed yesterday as they sold Edvard Munch’s iconic painting ‘The Scream’ for a cool $119.9 million. A portrait of modern man’s living and growing madness, Munch’s painting is as recognizable as the Mona Lisa and in this writer’s opinion, far more powerful a work of art. Have you seen the Mona Lisa… an incredible experience, but an underwhelming one to be sure.

This record-breaking art deal started up the gears of my mind and they steered me to two things we deal with quite exclusively here at Quizzle.com – money and madness. The money part I am sure you can feature, but the madness part requires a little explanation. According to Gallup, even amidst the more dismal job’s climate Americans were enduring in July of 2011, a ‘lack of money’ topped the list of our concerns by a respectfully wide margin. It has long been established by physicians and psychologists that the emotional effect of worrying over finances is not just America’s, but the world’s top stressor. In 2009, nearly two out of three Americans said money caused them the most angst. Hence the madness angle. At Quizzle.com we provide the information and tools that empower you to take control of your debt and personal finances. With the only true free credit report and score, the Quizzologists want to help you, above all things, relax.

If you look past the poor production quality and the quasi-6th grade school-picture splash background aspect of this video… Dr. Taylor has some excellent suggestions on how to reduce your financial stress.

Munch’s ‘The Scream’ Fetches $120 Million was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

Having struggled through my very own trials of personal finance, for years I have been on the prowl for ways to stretch dollars and, at times, how to make a quick buck. With the Kentucky Derby coming up this weekend, this morning I stumbled on a wonderful amalgamation of Derby trends that any serious horse player is going to consider before laying down their bets. While I might be excited, the Quizzologists and personal finance gurus I have the pleasure of working with warn all that gambling is no way to a secure a sound financial foundation for any individual – to which I respond, ‘but its fun’. And they retorted, ‘so are shopping sprees but they don’t save you money.’

A Few Historical Trends
While a true horse purveyor I am not, if you’re considering putting a few bucks on that horse with the fanciest name here are a few historical trends you should consider before bellying up to the physical or digital betting window.

No races as a two-year old… There has been no horse that won the derby that didn’t race at least once as a two-year old since 1882. In fact, only two other horses in that time managed to come as close as second.

The Layoff… Known as a layoff, this is the amount of time a horse is given to rest before running in the Kentucky Derby. A layoff of longer than three weeks used to be considered too long for potential Derby winners. Barbaro broke this trend, resting for four weeks before the starting gun clapped the air in his victorious run in 2006. Since then, three other horses have taken the Derby on the heels of a long rest. Don’t let a little down time sour you on your favorite horse.

Trends and tricks aside, betting on horses probably won’t make you rich, but if you’re going to do it, do your homework first and give yourself a puncher’s chance.

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Playing the Ponies… Winning Trends at the Kentucky Derby was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!

It seems that for the time being Americans are content with continuing their penny-pinching ways. With the summer months approaching gas prices are certain to rise and unemployment continues to hover over eight percent, we would all do well with a little belt-tightening. At Quizzle, we don’t point fingers, we just state the facts, and while the economy is looking up from a year or two ago the future remains uncertain.

Now is the best time to pay down debt and save a little cash for that rainy day fund. Your credit score is vital to this process. If you haven’t already, I highly suggest you avail yourself of the simple to use and almost instant free credit report and score from Quizzle.com. They won’t ask for a credit card or social security number and you still get a full, detailed credit report and advice on how to improve your credit score. Understanding your credit is paramount to righting your personal finances, and as a child of the 80’s I hope you all know what I mean when I say ‘knowing is half the battle’.

Reality and Humor Collide at White House Correspondents’ Dinner was originally featured on Quizzle Wire

Quizzle.com is the easiest way to get a complete understanding of your credit. Visit Quizzle.com to get your free credit report and score. No credit card or social security number necessary!