- Oct 11, 2000
- 56,336
- 11
- 0
http://abcnews.go.com/Business/face...chance-company/story?id=16372015#.T7ZR_1LSdvI
This doesn't seem very "free market" to me. I'm not alone in sharing that viewpoint.
While Facebook announced on Thursday that its initial public offering of common stock would be priced at $38 a share, raising $16 billion and valuing the company at $104 billion, the shares available for purchase by the public will likely be priced higher. That's causing many analysts to caution individual investors not to rush into making any risky investments.
Facebook's lead underwriter, the investment bank Morgan Stanley, determined who got shares of the company before shares are sold to the larger public on Friday, said Jim Krapfel, IPO analyst with the Morningstar investment firm.
This doesn't seem very "free market" to me. I'm not alone in sharing that viewpoint.
Mellody Hobson, president of Ariel Investments, an investment firm in Chicago, said there was "no way" she was going to purchase Facebook shares as an individual investor on IPO day.
"First of all, the institutions have gotten there first. And we're getting their sloppy seconds," she told ABC News' Sharyn Alfonsi.