Was Facebook stock being manipulated? UPDATE

There is a chart that was distributed by Twitter user  @bourbon_meyer that demonstrates why Facebook’s stock stayed at $38.00.

It suggests there was some stock manipulation happening. The way to read it is see that smaller bids were run over by massive bids at the higher price. Were the underwriters of the IPO making sure their client’s stock price stayed at $38? Personally, I think Facebook is overpriced and overvalued. You have to wonder if it is not for good reason.

I wonder if the SEC will look into what has happened. It does look fishy.

Even the NY Post is reporting that the big banks bailed out the IPO.

Update:

This story is starting to get more traction. There are firm reports that show how big banks bought large amounts of stock to keep the price at $38.00. The lead bank, Morgan Stanley, who is also the underwriter, bought 64 million shares to prop up the price.

Bloomberg news reported on Morgan Stanley Saturday with details of the stock purchase.

The other question is why was there a glitch in the NASDAQ opening? NASDAQ is claiming a software glitch. There is speculation that FINRA may be opening an investigation. While there are no public reports of this, speculation from industry insiders say this is quite possible.

Post By Paul Lorinczi (132 Posts)

Paul is an Internet consultant and President of TLL Ventures LLC. TLL Ventures is a small Internet marketing firm working with companies to maximize opportunities in eCommerce, business blogging, social media and search engine optimization to dominate their markets. My interests are in Entrepreneurial pursuits, soccer, music, and travel.

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