The Facebook IPO was introduced recently at $38 a Share. The price is expected to double the first few days. The 500 million shares were sold but most can't be re sold before 3 months.
As the shares started selling, a realization that the prices are not getting off the ground. So the under writers tried to hold the prices at the $38 level.... reduce the available shares, the computers were down for few hours.
As a result, those who ordered thousands of shares, to sell in few minutes later, couldn't find out if they are long or short and what profit or loss they accrued.
Now many are suing to recope the losses and many will get money back.
What a clean honest operation that lead to someone making windfall on the back of those who thought the system is fair.
The fair value today of FB , according to me, is $15/share.. so go figure.
Please note free market rely on Demand and Supply. Some may be able to influence the balance at least for a short period of time, enough for you to loose your Penguin.
