Audio: Facebook's big red flag

Facebook's corporate governance is far from best practice

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The guest on this week's Motley Fool Money radio show is corporate governance expert Nell Minow. Facebook has made headlines for the size of its IPO, as well as the fact that some investors felt burned by the stock right out of the gate. Despite selling some of his shares, CEO Mark Zuckerberg is still the majority shareholder. In this segment, Minow analyses Facebook and shares why the corporate structure should serve as a big red flag for investors who are considering buying shares. Will having a structure similar to a company like Google mean Google-like returns for shareholders?

Despite being the largest company to IPO, Facebook still has the challenge of creating new ways to make money off the hundreds of millions of people who populate the site.

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A version of this article, written by Chris Hill, originally appeared on fool.com

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