IPO

As more details emerge on the behind-the-scenes events surrounding Facebook's initial public offering, the more upsetting the revelations might become to individual investors.

Just before Facebook went public, a large investment firm named Capital Research & Management indicated to the social network's underwriters that it wanted to take a significant investment in the company. However, according to the Wall Street Journal, citing sources, Capital Research was warned by one of Facebook's underwriters about the social network's declining revenue forecast, leading the investment firm to buy far fewer shares than initially anticipated. Some of the firm's … Read more

In the wake of its mishandled initial public offering on Nasdaq last week, Facebook is reportedly considering a proposal to switch its stock listing to the New York Stock Exchange.

Executives at the social network and the NYSE have exchanged phone calls and e-mails regarding a possible switch, a person familiar with the matter told Bloomberg. A Facebook representative declined to comment on the report, but NYSE representatives denied such negotiations were occurring.

"There have been no discussions with Facebook regarding switching their listing in light of the events of the last week, nor do we think a discussion … Read more

In today's show, Facebook shareholders are fuming, Windows Phones need updating and Prime subscribers are streaming:

Facebook and several banks have been slapped with a lawsuit, accused of hiding some details about revenue estimates days before the stock went public. The charge is this: Facebook spoke with select analysts about additional information on revenue expectations than what was disclosed in amended filings. Smaller investors are upset they were left out of the loop, and say they lost money because they didn't know the full picture. But even if Facebook did give extra info to analysts, it's not … Read more

The fast money always seems to come out ahead.

According to a Bloomberg report, the Wall Street banks that arranged Facebook's IPO made gains of about $100 million "stabilizing" the stock after its poor debut on the Nasdaq on Friday.

In other words, the banks -- led by Morgan Stanley -- made big profits as they traded the stock in an attempt to keep it from sinking too much. This is standard practice for a lackluster IPO, which was certainly the case with Facebook's $104 billion offering.

Bloomberg, quoting a person familiar with the matter, said … Read more

Last time Jill Schlesinger was here, she advised all our listeners to be patient and wait to see how the Facebook IPO would react to the hype machine leading up to last Friday's open trading. Two weeks later, we hope you listened, or you may have lost some money.

Maybe not as much as Zuckerberg eating $2 billion, but either way you should tune into today's episode as Aunt Jill explains the two debacles that sent Facebook into a downward financial spiral.

Everyone needs an Aunt Jill, right? She'll answer a few of our listeners' questions this … Read more

The Facebook IPO can now safely be said to rank among the sloppiest tech offerings in recent memory. In the latest installment of this "clusterzuck," Reuters has obtained an internal memo reporting that Morgan Stanley is ready to make price adjustments for retail customers if they paid too much during Facebook's debut as a public company last Friday.

The investment bank confirmed to Reuters the contents of the memo that, among other things, says that "all orders are currently being reviewed for best execution pricing." It also says that Morgan Stanley expects "there will … Read more

Turns out, Mark Zuckerberg -- like all the insiders who sold shares into the IPO -- got a good deal.

Facebook's CEO has completed a transaction of the 30.2 million shares that he was slotted to sell, according a document filed with the SEC.

He sold them at $37.58 a share, netting him more than $1.1 billion. His price was just below the offering price of $38 because the underwriters take a cut. Zuckerberg had planned to sell the stock mainly as a way to pay taxes, according to the company's S-1 IPO filing.

Even … Read more

Last updated: 1:49 p.m. PT.

Facebook shareholders have sued the social network, CEO Mark Zuckerberg, and a number of banks, alleging that crucial information was concealed ahead of Facebook's IPO.

The lawsuit, filed in the U.S. District Court in Manhattan this morning, charges the defendants with failing to disclose in the critical days leading up to Friday's initial public offering "a severe and pronounced reduction" in forecasts for Facebook's revenue growth, as users more and more access Facebook through mobile devices, according to Reuters, which cited a law firm for the plaintiffs. (… Read more

Nasdaq would have delayed Facebook's IPO to address technical problems had it known the extent they would affect its trading system, a senior official for the exchange told customers today.

Eric Noll, Nasdaq's head of transaction services, said the exchange "by no means would have gone forward" with the much-anticipated offering had it known problems would disrupt a "normal trading day," according to an account of the conference call reported by the Wall Street Journal.

"In retrospect, it was incorrect," Noll said of the decision to proceed with the blockbuster offering after … Read more