

Facebook IPO: A Tale Of Boom and Bust  - MajidAhmed
http://www.carbonated.tv/blogs/facebook-ipo-a-tale-of-boom-and-bust

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pbreit
This article doesn't make any sense. For example: "the more Facebook shares
fall, the more money Morgan Stanley and Facebook IPO underwriters make". This
would only be the case if the banks were short the company which no one has
confirmed yet and is usually not the case. In fact, some believe that Morgan
Stanley bought a large number of shares above $38.00 in order to prop the
price up on the opening day, in which case it would be setting on a very large
loss.

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aginn
Agreed. That is not how underwriting works. Also, the first FB shorts have not
come due yet.

<http://finance.yahoo.com/q/op?s=FB+Options> Current FB options show that most
investors think the stock will fall.

