Facebook is a juggernaut of a company that has captured the interest and imagination of many first time investors. Unfortunately, for those who had no experience in investing and had to learn how to buy Facebook stock during the IPO, it has turned into a really bad situation.
Right now, the stock is down more than 50% from its IPO price and that is quite a hit for an investor of any experience level. For those who had never bought a stock before, investing in the market is something they might shy away from in the future because of that big loss.
The stock market is losing credibility with younger investors who are daily fed the impression that it is rigged toward the rich. Occupy Wall Street and the mentality that the rich get richer while the little guy gets stomped on has made many younger adults who are in their 20’s and 30’s distrust big corporations and buying stocks.
This is a terrible shame as everyone should understand how the stock market works and have a portion of their assets in it as historically it has provided the highest rate of return. Anyone who is serious about retiring in today’s world need to actively build their savings and one of the weapons in their arsenal should be stocks. But for younger people who are now permanently turned off by the market, their chances of ever becoming self dependent have been greatly reduced.