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FB's bankers short the stock
08-21-2012, 03:02 PM #1
Shadow Mrs. Buckwheat
Posts:12,782 Threads:1,182 Joined:Feb 2011

Right now, reports Lynn Cowan of the Wall Street Journal, while Facebook investors digest the fact that the stock has now dropped to $19 from an IPO price of $38, Facebook's bankers are divvying up another $100 million they made on the Facebook stock, this time in a much less visible fashion.

How did the bankers make this second bonanza?

By shorting Facebook's stock.

By, in other words, selling Facebook stock they didn't own and then cashing in when the price dropped.

Seriously!

Wall Street didn't call this "shorting" the stock, of course. Because "shorting" is widely understood to be a bet that a stock will drop. And obviously bankers don't want to be seen as "betting against the clients" they just sold IPO stock to.

Instead, the big short position that Facebook's lead banker, Morgan Stanley, took in Facebook's stock at the IPO price is described as engaging in "price stabilization"

Read more: http://www.businessinsider.com/facebooks...z24BGrVkbl

Not illegal but sure filthy gaah.gif
08-21-2012, 03:10 PM #2
JayRodney ⓐⓛⓘⓔⓝ
Posts:31,286 Threads:1,438 Joined:Feb 2011
Howdy Shadow! hug.gif
bored.gif Did anyone expect anything less? It's been a money making cow to the insiders, it'll got the way of myspace before long.

wonder.gif
08-21-2012, 03:25 PM #3
Shadow Mrs. Buckwheat
Posts:12,782 Threads:1,182 Joined:Feb 2011
hug.gif Hej JR
Yup, down to $10 by xmas. Groupon right behind rofl.gif
08-21-2012, 09:35 PM #4
Accidental Stoner Member
Posts:8,821 Threads:70 Joined:Feb 2011
Haha, they love their fuckry chuckle.gif
Bless'em.


Not a penny to my name,
but I've got my pride and shame.

doobie.gif
08-22-2012, 03:15 AM #5
yankees skier
Posts:5,898 Threads:215 Joined:Feb 2011
This may end up the biggest scam of the year.

Biere.
08-29-2012, 09:26 AM #6
borndead Member
Posts:15 Threads:3 Joined:Aug 2012
I used to love playing the game"Wall Street Raider". The game was a real life stock simulator. It start you off with 500 million dollars and you see what you can accumulate over the years set. The thing that was fun to do in it was to buy 1% of shares in a certain stock, then an hour later buy another 1%, then next buy 2% and then next maybe 4 or 5%. Then i would notice people would start to see this jump and start buying in thinking it was going to make gains, but it was all a setup by my money bagging ass, once after I would buy up about 9-10 % of the stocks and everyone else would start making buys, increasing the stock price, I would then sell off 8-9 % of the stock making about 500,000 or so and then leave my 1% in just to get back dividends over time by staying in it.
This was one of my favorite games I ever played. unfortunately Operating systems have changed and the game doesn't work anymore, but to start off with 500 million and to turn it into 20 billion over 20 years was fun as ğck to do! Now yoy know what those in the stock market enjoy doing to the underdog!
08-29-2012, 09:48 AM #7
Shadow Mrs. Buckwheat
Posts:12,782 Threads:1,182 Joined:Feb 2011
rofl.gif You were an HFT before the algos lol.



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