This One Thing Could Mark a Bottom in Facebook (FB)
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"Failure", "flop", "scam..."
These are some of the words being used to describe the Facebook (Nasdaq: FB) IPO fiasco, which has lost investors an astonishing $28 billion in market value since coming public just 13 short days ago.
With media reports suggesting "selective disclosure" to savvy wealthy investors at the expense of unsavvy retail investors, Congress smells blood and wants to hang someone.
Connecticut Senator Richard Blumenthal (D) took to the airwaves today to discuss the matter. "The concern is that there was selective disclosure - that the smaller investor failed to be given the information that larger investors were," he said. Congress needs to determine whether the present laws are adequate and who knew what when, Blumenthal stressed.
None other than CEO Mark Zuckerberg might be a potential witness, Blumenthal said. While Zuckerberg could be called, other financial executive which had direct responsibility for informing the underwriters are more relevant witnesses, he said.
Investors are clearly outraged at the IPO debacle. However, those that have waited and watched from the sidelines may finally have their opportunity to pounce. Parading Zuckerberg & Co. in front of Congress may mark the ultimate bottom in the stock.
These are some of the words being used to describe the Facebook (Nasdaq: FB) IPO fiasco, which has lost investors an astonishing $28 billion in market value since coming public just 13 short days ago.
With media reports suggesting "selective disclosure" to savvy wealthy investors at the expense of unsavvy retail investors, Congress smells blood and wants to hang someone.
Connecticut Senator Richard Blumenthal (D) took to the airwaves today to discuss the matter. "The concern is that there was selective disclosure - that the smaller investor failed to be given the information that larger investors were," he said. Congress needs to determine whether the present laws are adequate and who knew what when, Blumenthal stressed.
None other than CEO Mark Zuckerberg might be a potential witness, Blumenthal said. While Zuckerberg could be called, other financial executive which had direct responsibility for informing the underwriters are more relevant witnesses, he said.
Investors are clearly outraged at the IPO debacle. However, those that have waited and watched from the sidelines may finally have their opportunity to pounce. Parading Zuckerberg & Co. in front of Congress may mark the ultimate bottom in the stock.
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