Wednesday, May 25, 2011

Zynga IPO? I Can Play That Game!

[guest post by TS]

Hey, I heard Zynga is about to do their IPO! Let's jump on that!

Hold on there, cowboy.  Until you see the whites of their eyes, or rather an S-1 filing on the SEC's website, you're not going anywhere with that company (unless you're using SecondMarket or one of it's competitors).

I know Kara Swisher jumped the gun with telling everyone and their sisters that Zynga is about to file, but do your own research before you believe the hype.  You want to read an S-1 first to find out the true stuff about a company, and a company ain't filing nothing without an S-1 ("General form for registration of securities under the Securities Act of 1933").  Check out Zynga's current filings here.

Why, you say, doesn't Yandex have an S-1?  Yandex is a foreign company, and as such files the similar form F-1 (Registration statement for certain foreign private issuers).  S-1/A or F-1/A's  are amendments to the original S-1, and may or may not included the entire original filing plus changes, depending the number of additions.

Concurrent with an IPO comes the Prospectus, form 424(b)(4) (or, forms 424(a) through 424(b)(9), depending on the rule for the prospectus in question), which gives the IPO price as well as final financial and disclaimer statements & info.  SEC forms description PDF.  SEC company filing search page.

Always do your own research when about to act on news or tidbits you've heard.  You must feel more comfortable with a direction you're about to take with your investments so that you know your move is the right move for you, for your own risk tolerance.


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