#Login Register

  • 0 Vote(s) - 0 Average

FB's bankers short the stock
08-21-2012, 03:02 PM #1
Shadow Mrs. Buckwheat
Posts:12,775 Threads:1,181 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.


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:32,022 Threads:1,457 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.

08-21-2012, 03:25 PM #3
Shadow Mrs. Buckwheat
Posts:12,775 Threads:1,181 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:9,167 Threads:78 Joined:Feb 2011
Haha, they love their fuckry chuckle.gif

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

08-22-2012, 03:15 AM #5
yankees skier
Posts:5,889 Threads:215 Joined:Feb 2011
This may end up the biggest scam of the year.

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:12,775 Threads:1,181 Joined:Feb 2011
rofl.gif You were an HFT before the algos lol.



DISCLAIMER / Terms of Service (TOS):
Kritterbox.com - Socialize anonymously, commentary, discussion, oddities, technology, music and more!  This website is provided "as is" without warranty of any kind, either expressed or implied. kritterbox.com shall not be liable for any damages whatsoever, including, without limitation, those resulting from loss of use, data or profits, whether or not advised of the possibility of damage, and on any theory of liability, arising out of or in connection with the use or performance of this site or other documents which are referenced by or linked to this site.
This website exists solely for the purposes of exchange of information, communication and general entertainment. Opinions from posters are in no way endorsed by kritterbox.com. All posts on this website are the opinion of the authors and are not to be taken as statements of fact on behalf of kritterbox.com. This site may contain coarse language or other material that kritterbox.com is in no way responsible for. Material deemed to be offensive or pornographic at the discretion of kritterbox.com shall be removed. kritterbox.com reserves the right to modify, or remove posts and user accounts on this website at our discretion. kritterbox.com disclaims all liability for damages incurred directly or indirectly as a result of any material on this website. Fictitious posts and any similarity to any person living or dead is coincidental.
All users shall limit the insertion of any and all copyrighted material to portions of the article that are relevant to the point being made, with no more than 50%, and preferably less of the original source material. A link shall be visible in text format, embedded directly to the original source material without exception.
No third party links, i.e. blogs or forums will be accepted under any circumstances, and will be edited by staff in order to reflect the original source of copyrighted material, or be removed at the sole discretion of kritterbox.com.
Fair Use Notice:
This site may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. Users may make such material available in an effort to advance awareness and understanding of issues relating to economics, individual rights, international affairs, liberty, science, and technology. This constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C.Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for educational and/or research purposes.
This Disclaimer is subject to change at any time at our discretion.
Copyright © 2011 - 2017 kritterbox.com