Facebook Raises $16 Billion in IPO

As investors raced to buy shares, Facebook, the sprawling social network, raised $16 billion on May 17, in an initial public offering that valued Facebook at $104 billion.

While the I.P.O. shares, 421 million of them, are being sold at $38 each, the feverish anticipation of their debut could drive them higher on May 18 when the stock starts trading about 11 a.m. Newly public technology stocks — particularly ones that have captured investors’ attention like Facebook — often achieve double-digit gains in a one-day pop. Investors who buy Facebook shares are taking a stake in a unique and potentially valuable business. But they are also exposing themselves to the risks posed by a relatively young company operating in uncharted territory.