Facebook's IPO documents included this rendering of what its paper stock certificate will look like.
NEW
YORK (CNNMoney) -- The typical way to buy stock in a publicly traded
firm is to open a brokerage account and place an order. But for those
who want to own just one ceremonial share of a company, there's an
easier, if sometimes pricier, way: You can buy through websites that
specialize in "one share" transactions.
The operators of those sites say they expect Facebook to become one of their most popular stocks once it begins trading publicly. That's currently on track to happen this Friday.
"It interests people who are not ordinarily interested in the stock market," says Rick Roman, the founder of GiveAShare.com. "We've been getting people asking about it for a year."
Sites like GiveAShare.com and OneShare.com
are careful not to market themselves as places for serious investors.
Stocks are risky, and any gains on a single share are likely to be tiny.
Instead,
the sites cater to more casual fans of the companies' brands. They also
offer something traditional brokerages rarely do: paper stock
certificates, suitable for framing and showing off.
Companies
aren't required to offer paper stock certificates, and a shrinking
number of them do. Apple, for example, stopped issuing paper
certificates in late 2010.
Roman says he was surprised and delighted when Facebook, which will trade under the ticker (FB),
revealed in its IPO paperwork that it will make paper certificates
available. (Citing pre-IPO "quiet period" regulations, a Facebook
representative declined to comment on the company's decision to issue
paper shares.)
Both GiveAShare.com and OneShare.com plan to begin
offering Facebook shares for sale as soon as the stock starts trading.
Like other retail investors, they'll be buying shares at whatever the
market price is, which is likely to be much higher than the offering
price.
Roman, who typically updates the stock prices on his site
just once a week, says he expects to adjust Facebook's price several
times on its first trading day.
Buying through a one-share site is
generally more expensive for customers than buying through a broker.
Both GiveAShare.com and OneShare.com charge a $39 fee for their
services, which include buying the share and procuring the paper stock
certificate.
Take Disney as an example. It's by far the most
popular stock on both sites, thanks to its brand recognition and its
colorful, cartoon-filled stock certificate. A single share of Disney (DIS, Fortune 500) cost $45.56 at market close on Friday. Buying one through GiveAShare.com currently costs $82, or $84.28 through OneShare.com.
Neither site prices its shares in real-time, so their price is typically slightly out of sync with current market prices.
"We
think of ourselves as selling a product, not a stock," Roman said. "If
the current share price is a few dollars higher than ours, we'll eat the
difference."
The stock customers receive is a fully legal share
with all the attached rights. An investor can attend shareholder
meetings, and if companies pay a dividend, they'll get regular checks
for the earnings (often just pennies) on their single share.
They'll also get a paper stock certificate, though that takes a few weeks to process and ship.
The
cheapest option is to stick with a bare-bones cardboard frame for your
certificate, but almost no one does that. OneShare.com CEO Lance Lee
says that around three-quarters of his customers upgrade to a fancier
package.
GiveAShare is introducing a "new, improved" frame --
"it's larger and shows off the certificate better," Roman says --
specifically for Facebook shares. Customers can customize it with
messages like "MARK ZUCKERBERG WORKS FOR ME! OFFICIAL FACEBOOK
SHAREHOLDER
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