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Sure, the value of their holding, but how much cash did they get by selling the initial stocks?
That cash doesn't change value, and they didn't have it before the stock sales.
Sure, the value of their holding, but how much cash did they get by selling the initial stocks?
That cash doesn't change value, and they didn't have it before the stock sales.
Whenever the lockup period is over.
OK, but he still has cash he didn't have before if he sells it.
What is the number? He has 28% of the stock, I think.
I wonder if this would have gone public if he had controlling interest?
With an actual stock value estimated by assets of around $7.50, he is a winner where ever the price settles at.
Yes, and none of that cash would have been raised through the IPO. He could have privately sold shares before the IPO.
the stock's book value isn't relevant here. Those shares had a market value well above $7.50 before the IPO.
True. Profit potential is a factor. I was just surprised when I read that all it was worth at that level.
If you're dumb enough to believe the people who are SELLING the stock point blank, you deserve to get fleeced. "Hey, Facebook is going to be worth 1 billion one day! Get on the bandwagon now!" If you get suckered, that's your fault. Stocks are a risk.
I believe that I read that FB made 20 B off the ipo
You are wrong.
Whoever wrote that isn't very good at math.
since y'all can't seem to do it I'll do it for you.
They sold 180 million shares.
If they got $42 for every single one (which they didn't) that would be a hair over 7 1/2 billion. ( 7.56 to be exact)
Stocks at this level aren't my thing, so yes, I may be wrong. I find your grade school at ude of making fun of me whenever you can beyond juvenile.
The underwriters are paid a (big) fee for the IPO. Big funds and brokers ask for an allocation of shares for their clients (Merrill Lynch, E-Trade, etc.) and the underwriter doles them out to the individual brokerages to sell to customers. The underwriter is not obligated to buy the shares of the IPO if no one wants them.enlighten me, great one
In the case of Facebook the underwriters did buy a lot of shares just to support the $38 price point the first day but they weren't legally obligated to do so. It was pride but also good PR/business. If they hadn't the next company that went public probably wouldn't use an underwriter that wouldn't support the opening price.
That is of course is an oversimplification. Some IPO's have been cancelled at the last second if the underwriter detected that there wasn't enough demand at the set price point.
NEW YORK (CNNMoney) -- The IPO market is settling into a deep freeze following Facebook's troubled initial public offering two weeks ago.
"Facebook alone froze the pipeline. It was done so poorly by the underwriters, and there had been so much hype around this deal that it's produced so much angst and fear about the IPO market," said Scott Sweet, managing director of IPO Boutique.linkIn the Facebook blamegame, lead underwriter Morgan Stanley (MS, Fortune 500) has come under attack for overvaluing the stock, which is now trading nearly 29% below its IPO price.
New companies are now worried that underwriters may significantly underprice their shares to simply get investors interested in this environment, according to several experts.
NEW YORK (CNNMoney) -- The IPO market is settling into a deep freeze following Facebook's troubled initial public offering two weeks ago.
"Facebook alone froze the pipeline. It was done so poorly by the underwriters, and there had been so much hype around this deal that it's produced so much angst and fear about the IPO market," said Scott Sweet, managing director of IPO Boutique.linkIn the Facebook blamegame, lead underwriter Morgan Stanley (MS, Fortune 500) has come under attack for overvaluing the stock, which is now trading nearly 29% below its IPO price.
New companies are now worried that underwriters may significantly underprice their shares to simply get investors interested in this environment, according to several experts.
new low today
Correct me if I'm wrong, but don't a large number of IPO's settle lower then their starting price? Isn't it the nature of the game?
In some IPOs the price shoots up initially with the hype then shoots back down. The Zillow IPO last year is an example of this.
Immediately tanking from the get go like this is rare and means someone ed up valuing shares.
IPOS dont hurt if you receive them free out of nothing or can always deferred payments for bought shares, then again these clowns can just offset the losses CGT....i once had free shares that jumped to $45 on openning day, then slowly crawling down to $4 in 15 years....
the only companies that are immune to he up and downs when ur looking at a yield perspective are stupid monopoly companies who get alot of govt protection
I find it fascinating Facebook is already being sued by stockholders. God bless
I didn't read the disclosure that accompanied the purchase. Think they have a case? There is no guarantee for stocks.
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