Facebook’s stock prices have dropped a huge percentage from the initial offering price.
Some believed prices would quickly rise and exceed $ 50 per share. Currently, prices sit at $ 31 per share — an 18 percent decrease from the initial offering price. Several news outlets are reporting that an SEC investigation could emerge surrounding Morgan Stanley’s handling of the May 17 IPO.
Morgan Stanley cut revenue forecasts for Facebook in the days before the offering, “information that was not disclosed to the market before the stock was listed,” according to Reuters. I do not know much about how the stock market works, but apparently this is frowned upon, to say the least.
If you would like to read more about the situation check out the links below.
