Facebook estimated market capitalization?

[JoeyV]

Number 1 is closest to correct - there is no distinction between the shares that employees hold personally and the publicly traded stock. When the stock starts trading publicly after the IPO, employees and even the guy who painted the original office building can sell tehir shares just the same as the IPO shares and the two are indistinguishable. This is pretty much the point of the IPO - not to raise $5B but to monetize all the existing shares.