Facebook's Big Red Flag

The guest on this week's nationally syndicated Motley Fool Money radio show is corporate governance expert Nell Minow. Facebook has made headlines for the size of its IPO, as well as the fact that some investors felt burned by the stock right out of the gate. Despite selling some of his shares, CEO Mark Zuckerberg is still the majority shareholder. In this segment, Minow analyzes Facebook and shares why the corporate structure should serve as a big red flag for investors who are considering buying shares. Will having a structure similar to a company like Google mean Google-like returns for shareholders?

Despite being the largest company to IPO, Facebook still has the challenge of creating new ways to make money off the hundreds of millions of people who populate the site. We've created a new report, "Forget Facebook -- Here's the Tech IPO You Should Be Buying," which details a much better social media stock that has a longer runway for growth than Facebook. The report won't be available forever, so click here to get access today -- it's totally free.

Chris Hilldoes not own shares of any of the companies mentioned. The Motley Fool owns shares of Google, Facebook, and LinkedIn.Motley Fool newsletter serviceshave recommended buying shares of Google and LinkedIn. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

At the time thisarticle was published

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.