Interesting points, but in the end FUCK FACEBOOK!
The botched offering of Facebook stock has raised several troubling questions, but at least we don’t have to worry about the one that plagues many IPOs: How are a few select investors able to buy in early at lower prices and then pocket huge profits when the trading frenzy begins?
Among the many apparent missteps in its public debut, Facebook is accused of setting an opening price that was too high. Instead of spiking on the first day, shares inched up just 23 cents, to $38.23. The stock has mostly fallen since.
But some IPO experts don’t think this was problem at all.
“The debacle was not the IPO but all the whining by speculators who didn’t make money,” says Lise Buyer, who helps companies plan initial offerings. Says Jay Ritter, a finance professor at the University of Florida, “Selling something for what it’s worth is the way most people think a market should work.”
For all its flaws, the Facebook debut did fulfill the chief purpose of a stock offering— to raise money for a company to pay bills, buy rivals, invest and expand. That aim is often lost amid the inflated expectations accompanying high-profile debuts.
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We heard this bull crap about not leaving any money on the table is a bangup job.
This is simply not true, yes they did a bang up job selling a small percentage of the company and din’t leave any money on the table. What about the vast majority of other shares? they wont have any upside in medium term because of this screw up.
The purpose of a good IPO is to raise money for the company and also leave some up side for the stock. That’s what creates value for both company and stock holders.