May 22, 2012 by AlJazeeraEnglish
As Facebook's share prices continue to fall, US regulators have called for a review of last week's Initial Public Offering (IPO) of the world's largest social networking site.
The financial services group Morgan Stanley has been ordered to account for its handling of the sale of Facebook's shares.
Of particular concern for regulators at the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FIRA) is a report that the consumer internet analyst at the stock's lead underwriter, Morgan Stanley, cut revenue forecasts for Facebook in the days before the offering, information that may not have reached many investors before the stock was listed.
Traders questioning whether the initial share price was realistic to begin with have been further shaken by the company's decreasing value on the NASDAQ.
On Friday, the day of the IPO, the firm was valued at over $100bn but that has has been more than decimated, dropping by $16bn in under a week.
Al Jazeera's Dominic Kane reports.
The financial services group Morgan Stanley has been ordered to account for its handling of the sale of Facebook's shares.
Of particular concern for regulators at the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FIRA) is a report that the consumer internet analyst at the stock's lead underwriter, Morgan Stanley, cut revenue forecasts for Facebook in the days before the offering, information that may not have reached many investors before the stock was listed.
Traders questioning whether the initial share price was realistic to begin with have been further shaken by the company's decreasing value on the NASDAQ.
On Friday, the day of the IPO, the firm was valued at over $100bn but that has has been more than decimated, dropping by $16bn in under a week.
Al Jazeera's Dominic Kane reports.
License:
Standard YouTube License
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
No comments:
Post a Comment