Facebook Raises $16 Billion at IPO Price $38

Facebook Inc. set its final price at $38 a share, as the social network gets ready for its initial public offering on Friday. At $38 a share, Facebook is valued at $104 billion, the biggest-ever valuation by an American company at the time of its offering.

Facebook is set to raise $16 billion from its IPO, becoming third-largest public offering in the history of the United States, behind General Motors and Visa.

On Friday, Mark Zuckerberg, the founder, is set to ring the opening bell for the Nasdaq from Facebook’s headquarters in Menlo Park, Calif., surrounded by executives, engineers and other employees. Shares of Facebook, which will trade under the ticker FB, will start selling to the public later in the morning. Read more “Facebook Raises $16 Billion at IPO Price $38”

Moody's lowered ratings of 16 Spanish banks

Moody's Investors Service on Thursday lowered ratings of 16 Spanish banks and Banco Santander's U.K.-based subsidiary by one to three notches.

Moody's cited unfavorable operating conditions on renewed recession, reduced creditworthiness of the Spanish sovereign, and rapid deterioration in asset quality for the downgrades.

The outlooks on ten of the banks are negative while ratings of seven other banks remain on review for further downgrade. Some of the affected banks include Banco Santander SA, Banco Espanol de Credito, Banco Bilbao Vizcaya Argentaria SA, Caixabank, and Ceca.

Criminal probe into $2B trading loss at JPMorgan

The Justice Department has initiated a criminal probe into the JPMorgan Chase’ $2 billion trading loss revealed last Thursday, according to a law enforcement source familiar with the situation.

The news came as Jamie Dimon, the embattled chief executive of JPMorgan Chase, faced questions from shareholders Tuesday.

Standard & Poor's and Fitch Ratings last Friday downgraded J.P. Morgan Chase rating because of the $2 billion loss on derivatives

Dow at highest level since late 2007

U.S. stocks rose Tuesday, propelling the Dow Jones Industrial Average
to its highest close since late 2007, after a report indicated U.S.
manufacturing expanded in April, offsetting concern about the economic
recovery.

The Dow Jones Industrial Average DJIA rose 65.69 points, or 0.5%, to 13,279.32.

The S&P 500 SPX added 7.91 points, or 0.6%, to 1,405.82.

The Nasdaq Composite COMP gained 4.08 points, or 0.1%, to 3,050.44

Different Ways Index Funds Are Weighted

You invest in index funds, but do you know that different index funds are weighted in a different way? Whatever type of index fund or funds you choose, make sure you understand the methodology, so you can stay away from an investment that doesn't behave the way you expected.

Although index funds seem to track anything and everything, there are a few primary ways of constructing them, from conventional market-cap weighting to alternative methods such as equal, fundamental, or price weighting. (read full article "How Index Funds Are Weighted" on SmartInMoney.com)

Cap-Weighted Indexing
By far the most common method of indexing is through market-cap weighting, in which the amount of each stock held is proportionate to its market value, or capitalization. So if a stock's market cap makes up 6% of an index, it also makes up 6% of the fund's portfolio.

Equal-Weighted Indexing
All stocks are held in equal proportion regardless of market cap. So, for example, an equal-weighted S&P 500 fund would still include the same 500 stocks as the cap-weighted version, but in equal amounts--in this case each making up 0.2% of the index.

Fundamental Indexing
Stocks are weighted based on a fundamental metric or metrics, such as dividend yield, earnings, book value, or a combination of factors.

Price-Weighted Indexing
Stocks are weighted by the share price for each company in the index, with the Dow Jones Industrial Average the most famous example.

Google Stock Split Cement Founders Control

Google announced that it would split its stock between voting and
non-voting shares. The new shares, which will be listed on the NASDAQ
exchange, will allow the search-engine company's founders, Larry Page
and Sergey Brin, along with the chairman, Eric Schmidt, to maintain a
controlling stake. A bet on Google is now a bet that its bosses will
stay sharp indefinitely.

Case-Shiller Index: Home prices lowest in nine years

U.S. home prices fell for the fifth month in a row in January to the
lowest level since early 2003, according to the S&P/Case-Shiller
20-city composite index.

The closely followed index dropped 0.8% in the first month of 2012.
The three-month rolling index includes transactions that took place
from November to January.

Over the past 12 months, prices have fallen 3.8% even though the U.S.
economy has shown increasing signs of recovery. Sixteen of the 20
metropolitan areas posted declines, while only Miami, Phoenix and
Washington, D.C., saw increases.

The federal government's index for home prices was unchanged in
January, but more recent data suggest prices might be stabilizing.

The large number of foreclosed homes, combined with a high
unemployment rate, has depressed the home market since a real-estate
bubble burst in 2007. Many Americans, especially younger people, lack
the financial means to buy a home despite ultra-low mortgage rates.