

Facebook underwriters holding the price with green shoe - alecco
http://ftalphaville.ft.com/blog/2012/05/18/1007071/with-facebook-give-thanks-for-greenshoes/

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alecco
<http://en.wikipedia.org/wiki/Greenshoe#Risk_to_Investors>

    
    
      The SEC currently does not require that underwriters publicly report
      their short positions nor short-covering transactions. Investors who
      are unwary of underwriter stabilizing activity who choose to invest in
      what they perceive to be a stable issue can encounter volatility
      when the underwriters pause or complete any stabilizing activity.
      "Cast in the most negative light, price stabilization might be seen
      as a means of transferring risk to a relatively naïve segment of
      the investor population."
    

How is this allowed by the SEC?

