My mother is a real estate broker for an extremely large brokerage company. It's actually the 4th largest in the World. She told me that just like Microsoft along time ago, her company is getting ready to sell within 2 years because the CEO and Founder is retiring. She said that they are offering 1000 Free shares to all the employees, and any friends and families of employees who become members free shares also before going PUBLIC WITH THIS. And they predict it will be worth atleast $20-$30 a share.
SHE wants ME to sign up as a member so I will get 1000 free shares, because if I sign up as a member under her, she will get an extra free 1000 shares on top of the 1000 free shares shes already getting. Now my mom has sign up my dad, and 22 others people already.
I heard mutual funds are better than stock trading. Which one is this? Should I sign up? I have by tonight to sign anyone I know up under me,so please tell me asap.
2006-12-31 06:13:27 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
The deadline for all employees of this company is tonight 12-31-06 at 7pm PST. Hurry.
2006-12-31 06:16:10 · update #1
Bewarned, and this can hurt you if you are working paycheck to paycheck.
When you go through an IPO, you are automatically taxed at the worth of the product at the first price when it becomes a common share. So let's say the opening price was $30 a share, so you would have to pay taxes on $30,000. You might have to hold on to the shares for a length of time, which means you might no be able to sell the shares to pay your taxes. Not only that, the shares may drop in price by the time you get to sell them (and therefore the shares woould be a liability and not an investment). If you do decide to get the shares, have $8,400 in cash on stand by to pay the taxes.
2006-12-31 17:29:04 · answer #1 · answered by gregory_dittman 7 · 0⤊ 0⤋
LOOKS LIKE I AM TOO LATE !!
If you would get 1000 shares for nothing then it is truly better than a mutual fund. Sounds pretty dirty though, to get FREE shares for nothing but just for signing up...signing up for WHAT ??
I would be leary of what I sign, but if it costs you nothing then go for it!
:)
2006-12-31 10:36:10 · answer #2 · answered by Kitty 6 · 0⤊ 0⤋