The Tragedy of Facebook: How Wall Street Robbed Main Street America
http://www.fool.com/investing/general/2012/05/25/the-tragedy-of-facebook-how-wall-street-robbed-ma.aspx
(From inside the article.)
However, troubling signs reportedly started to emerge around Facebook just days before its IPO. Conveniently, these details were hidden from the public.
This estimate cut for the VIP club only
As the story goes, midway through the customary "road shows," during which companies give presentations to large institutional investors to promote their IPOs, the group of investment banks bringing Facebook public saw their analysts cut estimates of the company's future sales.
Cutting sales estimates mid-road-show has been described as "unprecedented" in and of itself. But here's the thing: The banks themselves didn't spread the word far and wide. They didn't give anything close to fair access to the information.
. . . .
Zim: And this is why I don't mess with IPO's or
the 'stock of the day'.
Mad Poet Strikes Again.
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