41–50 of 64 posts
I'm confused by this "greenshoe" business. To prevent the price of something from falling, you can: (1) Increase its demand. (2) Decrease its supply. Which one does the "greenshoe" do?
Decreases supply. They bought up shares on the market, as opposed to buying them from FB itself.
Is this another way of saying that Facebook isnt really worth $38?
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Don't think it's just weekend press, and I don't think the investor community thinks of it that way either. It's sending a statement that they don't necessarily care about rewarding their investors. We won't really know what happens until MS isn't around to support the price. I'm excited to see what happens when you have a company that explicitly lets investors know that they're out to build products, not manage inve…
Isn't that what Jobs and Bezos have done?
I love it. Stock pops after IPO, greedy bankers taking the company money. Stock doesn't pop, overhyped failure. I wonder what a successful IPO would look like. Price doesn't change, no trading volume?
To me it all seems like part of the same problem: some banker pulls a number out of his ass as "the price". There should be an auction or market of some other kind to determine the price, because... well, markets are a pretty good mechanism for determining prices, usually much better than any one individual or small group.
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There is generally a lock-out period to make sure people are buying the company's shares, not all the employees' shares.
Can employees still sell their shares on secondmarket now that FB is public?
We know it was MS that's supporting them at that psychologically important $38 figure, but that $2.3B figure is just speculation. Still, I'm sure there are some very nervous traders this weekend over at MS. Would not be surprised to see a lot of shorts on stocks like Yelp, Zynga as a hedge. What a disaster this IPO was (for the banks, not for facebook). Though, I'm sure the people at Facebook aren't exactly happy wit…
Although this situation with the underwriters propping up the price makes Facebook's value pretty questionable and will create a negative sentiment, I believe it's positive for Facebook that the price didn't pop. Facebook already has a pretty steep road to travel to live up to the offering valuation. As a CEO I think I would prefer having a muted, non-volatile stock price than an inflated, volatile one. Inflated pric…
As are employees locked in for 3 months while seeing their stocks free falling.
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There is a 6 month lockup period.
I guess we'll be seeing a lot of 2 week notices in 6 months..
I love it. Stock pops after IPO, greedy bankers taking the company money. Stock doesn't pop, overhyped failure. I wonder what a successful IPO would look like. Price doesn't change, no trading volume?
To me it all seems like part of the same problem: some banker pulls a number out of his ass as "the price". There should be an auction or market of some other kind to determine the price, because... well, markets are a pretty good mechanism for determining prices, usually much better than any one individual or small group.
funny that Google tried the auction, ended up getting wall st against them and colluding to lower the price. Facebook co-opts all the big name banks as underwriters and gets a near-perfect opening price.
May 17 is a terrible time to IPO. Facebook will be fighting against a falling stock market. Operation twist is about to end, and there are a lot of believers in "Sell in May and go away."