Mark Zuckerberg started off small with a little known networking site called www.thefacebook.com, and he initially created the website for Harvard students only. How quickly things changed. For one, the name was changed when he purchased a new domain. The Facebook became Facebook and hit the world on September 26, 2006. It was a social networking site that was available across the globe but how to finance it was the investing news that many people wanted to read about.

The first investing news to make the financial scene was due to Peter Thiel. Thiel, a co-founder of PayPal, invested half a million dollars into this new company. It was through his investment that experts began to predict that the Facebook phenomenon would be in the top 10 business realm. Did it actually make it? It has not made it quite yet.

Facebook makes its money, which allows it to remain a free website, through the use of advertising services. Each time a person clicks on one of the banner ads and makes a purchase, the company receives a portion of the profits. But there is a problem with that. With revenue dependent upon you clicking a banner ad, it can begin to suffer if people do not buy through their advertising services. This is most likely why Facebook had a $3.63 million dollar net loss in 2005. It was spending more to host the website and provide services than it was bringing in.

More On: The True Investing News of Facebook

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