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I know Marc Z is already part of the lawsuit, from what I read, as a shareholder.
But I meant I am surprised there is not a lawsuit from Facebook against the MM's and/or NASDAQ, for the way this was handled - which has obviously damaged their reputation and cost them.
1) a damage for the IPO stock holder (here FB) is sure - hopefully any trader has set a tight SL to manage risk
2) the company itself has no real damage - they changed only investors - and they profit from every day "big news" for 0 costs
3) lofty companies making an IPO (be it a bubble or not) shift their own risks to other investors with less inside knowledge
- at that time exactly that risk has to be tested via Due Diligence by the new investor - it is only in HIS hand to check
for ANY incovenience BEFORE the buy and fix imponderabilities in the contract - otherwise the FULL damage goes to the new investor.
4) the old investors having brought their shares to the market may gain *again* after the IPO taking the mainstream
position to get a second winner through the high volatility of the stock.
HINT: If you do not want to burn your fingers - do NEVER invest in any overvalued IPO
In fact - IPO's are for insiders - not for the herd.
