Masses Suckered Into Facebook IPO Burnt With 20% Loss In 2 Days

Using the branding power of Facebook, Wall Street has suckered the masses back into the stock market only to burn them for a 20% loss in two days of trading.

Friday, Facebook had launched its Initial Public Offering which allowed retail mom and pop investors their first chance to trade stock in the company amidst weeks of media hype in the biggest stock offering of its kind.

The 1%, known legally as the sophisticated investor, were able to get on the stock before it started trading public for the price of $38 per share but when the stock finally started trading on the market the first price was $42.05 per share.

That represented an immediate 10% profit for the sophisticated investor.

Meanwhile hundreds of millions orders from middle class mom and pop retail investors flooded the market buy up the shares for the $42.o5 opening prices.

As they did those sophisticated investors who bought their shares before trading opened to the public for $38 per share dumped their purchases and stock sent the stock price plummeting.

That forced the stock offering underwriter’s to step in and buy shares to keep the Facebook’s stock price artificially propped up at the initial $38 dollar offering price until trading closed on Friday.
Today, the stock started trading again but this time without the artificial support of the bankers who wrote the deal and the stock plummeted and stayed near the days lows to close down another 11% at the price of $34.03.

Categories: WORLD NEWS

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