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.
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?
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Improving the US's technological infrastructure would be a costly undertaking, but government regulation could help boost connection speeds and competition.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.