How to buy WhatsApp shares - briefly?
Buying WhatsApp shares is not possible as WhatsApp is a privately owned subsidiary of Meta Platforms Inc. (formerly Facebook Inc.). To invest in WhatsApp, one would need to buy shares of Meta Platforms Inc. on the stock market.
How to buy WhatsApp shares - in detail?
Buying shares in a private company like WhatsApp, which is owned by Meta Platforms Inc., can be challenging due to the nature of their private ownership. However, there are several ways investors can gain exposure to such companies. Here’s a detailed guide on how you might approach buying WhatsApp shares:
1. Understanding Private Company Shares
WhatsApp is not publicly traded because it was acquired by Meta Platforms (formerly Facebook) in 2014. Consequently, its shares are not available on stock exchanges like the NYSE or NASDAQ. Instead, they are privately held and can only be traded among a select group of investors.
2. Investing in Meta Platforms
The most straightforward way to gain indirect exposure to WhatsApp is by investing in Meta Platforms Inc., which owns WhatsApp. By purchasing shares in Meta, you are essentially investing in the parent company that includes WhatsApp as one of its subsidiaries. This approach allows you to benefit from the overall performance and growth of Meta, including any positive contributions from WhatsApp.
3. Private Equity Funds
Some private equity funds specialize in investing in late-stage startups or companies that are expected to go public soon. While these funds typically require significant capital investments and have high minimum thresholds, they can provide access to private company shares before they become publicly available.
4. Secondary Markets
There are secondary markets where shares of private companies can be traded. Platforms like Forge Global or SharesPost facilitate the trading of private company shares among accredited investors. These platforms require verification and usually have high net worth requirements to ensure that only qualified investors participate.
5. Initial Public Offering (IPO)
If WhatsApp were to go public again, you could participate in its Initial Public Offering (IPO). This involves buying shares directly from the company at the IPO price. However, this is a speculative approach as there’s no guarantee that WhatsApp will ever go public again. Keep an eye on financial news and announcements for any updates regarding potential IPOs.
6. Employee Stock Purchase Plans (ESPP)
If you are an employee of Meta Platforms, you might have access to an Employee Stock Purchase Plan (ESPP). This plan allows employees to buy shares in the company at a discounted price. However, this option is only available to current employees.
7. Accredited Investor Status
To participate in private equity funds or secondary markets, you typically need to be an accredited investor. The U.S. Securities and Exchange Commission (SEC) defines an accredited investor as someone with a net worth exceeding $1 million, excluding the value of their primary residence, or with income exceeding $200,000 in each of the two most recent years (or $300,000 jointly with a spouse).
8. Brokerage Services
Some brokerage firms offer services that facilitate investing in private companies. These services often come with higher fees and may require substantial capital. Examples include Goldman Sachs’ Private Investments or JPMorgan’s Private Banking division.
Conclusion
Buying WhatsApp shares directly is not feasible due to its private ownership structure. However, investors can gain exposure through investing in Meta Platforms Inc., participating in secondary markets, or joining private equity funds. Each method has its own requirements and risks, so it’s essential to conduct thorough research and consider your financial goals and risk tolerance before making any investment decisions.