Friday, May 18, 2012

Facebook Shares Chill After IPO




The WSJ reports that Shares of Facebook Inc. FB +6.91% opened about 11% higher after they started trading, but quickly lost steam and fell as low as the$38 IPO price in their first half hour of trading.

The weak start came after high expectations for the Internet giant. The company's shares were recently changing hands up $1.58, at $39.62, after touching the $38 IPO price about a half hour after it started trading. The stock had opened at $42.05.


Underwriters stepped in to support the company's shares at the IPO price, according to a person familiar with the matter. There were more than 30 banks involved in the deal.

Trading volume in Facebook exceeded 100 million shares in the first three minutes of the stock's trading, as investors rushed into the shares and some who had received stock from the IPO cashed in….


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