Facebook's initial public offering (IPO) was on 18 May 2012. You are required to provide the following information on Facebook's IPO

1.What is the underwriting spread in percentage terms? Give your comments on the underwriting spread.

2.What is the fraction of the offering that comprised of primary shares and the fraction that comprised of secondary shares?

3.What is the size, in the number of shares, of the green shoe provision? What percent of the deal did green shoe provision represent?

Guidelines for parts a-c: You can go to the SEC EDGAR Web site (www.sec.gov/edgar.shtml)

Then choose "Search for Company Filings" and prick search by company name and enter "Facebook" and then search for its IPO prospectus, which was filed on the date of the IPO and is listed as "424B4". From the prospectus, you can find the information for answering the above questions in parts a-c.

4.If an investor invested in Facebook stock and bought the shares on day of the IPO at the offer price

- Estimate the investor's first day return. Give your comments on the first day return. - Estimate the long-term performance of Facebook in the post-IPO period at the end

of each financial year from the IPO date to 31 December 2014, that is, what is the investor's holding period return since the day he/she bought the shares to the end of each financial year for the first three years after the IPO? Give your comments on the long-term performance of Facebook IPO.

Guidelines for part d: Go to Yahoo Finance (https://au.finance.yahoo.com/), then enter search term "Facebook", then click on "Historical Data" and get daily prices of Facebook for your analysis.