Trading stocks on Facebook?
One startup says it has a way for people to buy and sell shares on the social network -- with no fees attached.
A small San Francisco company was getting a lot of attention Wednesday for its plan to offer stock trading through Facebook.We're not talking about shares of Facebook, which is expected to go public next month. What Loyal3 offers is the ability to directly buy shares from companies using Facebook -- with no fees attached.
Here's the idea: Users can start buying into a stock for as little as $10 a month. If you want to buy a stock priced at $50 a share, you would essentially get partial shares that fit your budget. Put $10 away every month, and in five months you will own one share. Customers will be encouraged to give their credit-card information and set up a monthly payment plan.
There are no fees to buy or sell. There is no brokerage account involved. Loyal3 says that the companies whose stock is being traded will pay all the fees. Why? Because when people buy shares, they become a loyal and valuable customer, according to Loyal3.
"We believe getting everyday people back into the markets is an antidote to many of the economic dislocations created by Wall Street," the company says on its site. Nearly 82% of American families don't invest in the stock market, which Loyal3 says is wrong. "As a result, institutional ownership in American companies far exceeds individual ownership, which we believe is unhealthy."
The company was getting attention Wednesday because it presented at a digital conference in New York hosted by AdAge. The company is expected to launch its service sometime before June.
Loyal3 seems to be pitching itself to companies as a way to build business. Its CEO has said that people who own a company's stock spend 54% more on that company's goods, according to The New York Times. Offering stock through Facebook lets companies build customer loyalty.
It's an interesting idea for people who would never otherwise buy stock.
What do you think? Would you trade stock on Facebook?
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