The boiler room brokers who’ve spent the last 6 months pounding their clients and prospective clients to get in on their “Facebook IPO funds” now have some ‘splainin’ to do. I explained what these were in a post last week, read it here.
Anyway, now their “clients” are locked into a private placement vehicle that purports to own shares – most of which are likely 144 lock-up shares (non free-trading stock). They pitched the fund as “the only way to get in on Facebook before the IPO!” I imagine that the sizzle that sold this steak was centered around the potential of a massive opening pop and the exclusivity that comes with owning IPO stock in advance.
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