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Greetings Net Surfer,
- Companies give away free stock to try and attract attention to themselves, basically marketing. They need a user base or the site just won't be popular.
- These stocks that are being given away have the future possibility of being worth as much as any other internet stock like Amazon.com's $100+/share or even Yahoo's $150+/share.
- The stocks of each company will only become valuable if the company begins trading publicly on the stock exchanges. The current trend in the Internet stocks is that once a company goes public their stock quickly increases in value. GeoCities went public 5 months ago and their stock at one point was up 200%!
- If the company goes public in say a year or two, then your stocks are worth the same as the one's being sold on the market provided the company honors them (which many companies are saying that they will). Even if the company never goes public or bust
s, you're only out the time it took you to register for free stock.
- There is absolutely no risk involved. However, to be certain all the above is acurate for all the companies you really should reference their legal information before you sign up, it's available and slightly different at each site.
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