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Anorak | Why Facebook’s Share Price Is Going to Fall

Why Facebook’s Share Price Is Going to Fall

by | 21st, May 2012

IT’S a brave man who tries to predict short term share prices but I’ll have a go. Sometime soon Facebook’s price is going to start falling.

The IPO did just great for the company and people selling the shares. That’s what an IPO is for after all, getting in money for those selling. However, one part of such a float is what’s known as “stabilisation”. For the first 30 days or so the underwriters of the issue try to keep the price stable.

Well, not so much stable: if the price soars then that’s just fine. But no one really likes it if the price starts to fall. So,

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Posted: 21st, May 2012 | In: Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink