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Corporate Governance Experts Are Not Enthusiastic About Long Term Investments In Facebook

Long-Term Investments In Facebook Could Be A Bad Bet, Experts Warn

Investors, social media watchers and Facebook users may be looking forward to the social network’s expected public stock offering later this year, but corporate governance experts aren’t quite so enthusiastic.

Earlier this month, Facebook filed for a $5 billion IPO -- a deal that would be one of the biggest public stock offerings ever and values the social media juggernaut at about $100 billion.

Those sorts of numbers, coupled with the company’s strong brand name, are likely to draw interest from individual investors eager to buy a piece of the company. Governance experts caution, however, that while buying a hot company like Facebook feels good now, potential investors should be wary of the stringent executive control structure outlined in the company’s IPO registration document.

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