-->
ThoughtsOnline

Saturday, May 19, 2012


Silly me, I would think that Facebook's stock price being relatively unchanged during its first day of trading would indicate that the underwriters priced the stock appropriately. If there had been a huge jump, that would indicate that Facebook and its initial shareholders got less for the stock from the underwriters than it was worth. And if there had been a drop, that would indicate that the underwriters had over-priced the stock.