Sorry to inject reality into the discussion. Always a bummer when someone filters the mud out of these waters, eh?
I guess so......
Regulations will not create this Utopia or fair market you and others suggest. I know you want to see the OTC shut down, but FB isn't an OTC stock.
It is up to the individual investor/trader to decide, not you or some bureau. I simply pointed out what you suggested was needed which was a proven business model prior to a company going public. FB is not the only example. In fact regulations have created other POOR investments, yet you and others keep demanding more of the same.
Who's business is it other than the company and the investor what should and should not be available to the public? The market offers a variety of risks and states as much, but none is a guarantee. Those that bought FB saw a company with........
a long-running, PROFITABLE, real business before it went public.
and that meant what?
And much to your chagrin, as much of a fiasco as the FB IPO was,
I spoke out about the IPO before trading began. I pointed out it was just to line the pockets of those you said created a long-running PROFITABLE business. I said there was NO MONEY going for business expansion. They simply printed shares so insiders could sell and collect their pay day and create a market for FB shares.
The principal purposes of our initial public offering are to create a public market for our Class A common stock and thereby enable future access to the public equity markets by us and our employees, obtain additional capital, and facilitate an orderly distribution of shares for the selling stockholders. We intend to use the net proceeds to us from our initial public offering for working capital and other general corporate purposes; however we do not have any specific uses of the net proceeds planned.
Sorry to inject REALITY into the discussion, but the markets aren't for the weak......they are all about prices. The lack of a business plan or a proven track record isn't always relevant. At what price one can purchase shares so they can sell those shares in the future at a higher price is what it's all about.
Call it greed if you like, but I prefer the word capitalism. Even you said the FB IPO was overpriced, yet it followed to the letter what you said should occur.......a proven business be in place before going public. Was it GREED that caused FB insiders to sell "worth less" shares in the $30's and $40's, or was it what the market brought.....ie capitalism?
Note: FB is less than $20 per share......worth less than the initial opening price(s). It traded at an all time low AH.
How it went public is a disgrace, but it was a real, proven business for years before it went public.
How was it a disgrace exactly? A disgrace to who?
Should more regulations be in place? They disclosed exactly what the IPO was all about and you and I both agreed it was overpriced, right? Should someone only be able to sell shares at what you and I consider reasonable, or should they be FREE to sell them at what others are willing to pay?