Facebook’s IPO launched at $38 a share, and the stock is now trading at $32, and the company and its bankers stand accused of having “hyped up” the stock.** There are lawsuits and hearings.
GM’s post-bailout IPO launched at $33 a share, and the stock is now trading at $22, after being repeatedly touted by the highest officials of the U.S. government. Yet the
suckersinvestors who bought it aren’t having a cow. …
**–I understand there is a specific complaint that material info about Facebook’s earnings was disclosed only to selected big investors. But there is also an underlying anger that Facebook’s stock has dropped so far. GM has dropped more.