Facebook IPO plunge sparks tidal wave of lawsuits

Re: He He

I totally agree that they only have themselves to blame, but its naive to think that going to court when you are in the wrong won't pay off.

Re: The shares will fall more

I have already read two different articles that said valuation based on reality as a tech stock would be just under $10. I wounder how long it will take to get there?

Re: Zuckerberg

Where did you hear he dumped all his stock??? I know he dumped a load on the first day but nothing since.

Re: Zuckerberg

Reminds me of the Costa Concordia where the real captain did leave his sinking ship.

It's not that it executed at a lower price, it's that it executed at all

With equities trading, you generally place an order with a broker/AE and this order will remain open until a trader is able to fill it. Until the trader executes, you can generally cancel the order at any time. His beef (I'd imagine) is that once it became clear the price was tanking, he wasn't able to cancel his order on their electronic platform and it was filled regardless.

Scousers don't sue

We turn up round your house with a car full of lads carrying baseball bats.

Miles cheaper.

"It is only possible to go long on this share option""

Seriously?!? :( How much more of a warning sign did small investors need?

And mainframes are built for...

Financial market is the mainframe heaven since these multi million dollar monsters offer amazing levels of reliability and bandwidth. These are the specs you need in banking/ markets. That is also the part "my PC has higher mhz" guys fail to understand.

So, it failed at a very interesting time?

The banks all celebrate at how much money they made off of a $10 dollar bill (that's $28 dollars per share ;) ).

Oh, you mean what happens for everyone else? They don't celebrate. :(

"Can anyone explain what happens when this really tanks like drops below 10 dollars a share? Any chance of them going out of business in two/three years? Or will it just drop to a certain point then limp along until they realise how they can make money from it?"

If Facebook don't have debts to pay off, which I don't think they do, then they can continue on even if the share price is low, so long as they are turning a profit. You ask a very good question. Low share price does not mean that Facebook will go out of business. But what it does is limit their options. Selling stock is a big way of raising capital. If the stock is not well valued, then they cannot make much money through that. Similarly, if the stock is not well valued, their options for borrowing are more limited. When we talk about their stock not being valued, we're really talking about their actual market capitalization. Ultimately, if the stock falls really low, it means that people don't think Facebook is a big business - no matter how many people use it or how high the brand recognition. And if they're a small business, then they are subject to takeovers and other market issues that big players shrug off through sheer size. Also, investors are going to be less tolerant of the board giving themselves nice big salaries and bonuses. Basically, it means that Facebook turns out to be just another run of the mill company along with numerous other corporations that are "just" worth a billion or whatever. Google, Microsoft, Apple, Baidu.. .they'll all just regard Facebook as another morsel. Given how much investors have paid for stock, who then see it devalue to <$10 (in your scenario), they would put a lot of pressure on the board to try and recoup their investment. A *lot* of pressure. If they think they could get a good price for FB, they might encourage takeovers.

So basically in answer to your question, if FB shares drop <$10, no that doesn't mean FB goes out of business. But it does mean that the market doesn't consider them a big player with all the limited credit, vulnerability, etc. that goes with that. Market Capitalization is your ability to go "Rarr" and have others jump.

Re: What you can see

"followed by self-righteous people telling everyone that has money to invest how dumb they are (while wishing they actually had money to invest)."

*Raises hand*

Re: Burn baby, burn!

Interesting. Looks like price shoring to me. An angel investor buying stock post IPO.

from wiki.

DST has strong ties to Goldman Sachs.[19] The majority of DST’s partners and employees have previously worked at Goldman Sachs. Alexander Tamas joined DST from Goldman Sachs in 2008 and John Lindfors, a previous partner at Goldman Sachs, joined DST in 2010.[20] Other ex-Goldman Sachs employees include Rahul Mehta [21] and Shou Zi Chew.[22] In January 2011, DST has orchestrated an investment into Facebook and brought Goldman Sachs into the deal

Re: The Social Network II — The Market

I had a very difficult time, the one where you squirm in your seat when you notice someone else doing something embaressing, when I heard FB was going public and the clamour for shares.

What, I asked myself, is wrong with the world ?

I had no answer and many sleepless nights tinged with the glimmer of hope that I would get a laugh out of it when the share price plummeted. Call it an itch waiting to be scratched.

I'm scratching big time now and discovering that there are still intelligent people in the world that thought and still think like me.

Great comments, folks, I'll post them on my facebook page. (my facebook page that's filled with lies about myself, that it )