SCAM? Don't you mean P&D?
That phrase is used, or should I say MISUSED, to describe penny stocks during promotions, but it doesn't seem to be used to describe the FB IPO.
I think the terms are over~hyped or over~valued, but not P&D, though insiders dumped on the hype with the help of the media and the underwriters who made tons of money. FB was pumped, and the insiders dumped.
Wasn't that the PURPOSE of the IPO according to the S-1? They wanted to make a market for FB, right? No real plans for the capital raised, just start selling shares, correct?
Everyone knew the valuation was at least 100 times earnings, and it GAPPED UP! People lose money and it's everyone else's fault???
The same media that over~hype FB is now actually doing analysis on FB and pointing out the risk like they didn't exist last week. Of course the investor that bought the shares to start with could have done his/her own DD and read it themselves in the S~1.
Plenty of RED FLAGS with FB @ $38 price if someone had taken the time to look.
Maybe the SEC could come up with a regulation where no one loses money in the markets. Or perhaps those that don't have the stomach for losing money shouldn't pretend they understand what they are doing.
FB is no SCAM. The strong made a ton, and the weak got crushed. It happens everyday in the markets, especially on the big boards. If certain rules were broken, the SEC can sort it out.
The markets are about price. It appears the IPO was over~priced, and the market is working it out. Many including the media don't seem to have a stomach for it, though they were more than happy to count the minutes and seconds leading up to the big event.
As Always: My Number 1 Priority is to educate. Penny stocks are very volatile, Always do your own Due Diligence
