should i buy some FB shares tomorrow?

[mary poppins]

Pump and dump.

http://www.dailymail.co.uk/news/article-2148839/Facebook-IPO-Morgan-Stanley-reimburse-investors-ripped-trades.html

"The news comes as even Facebook CEO Mark Zuckerberg dumped his own shares in the company, making $1.13billion as the stock nosedived, according to company filings."

But look on the bright side. He can use the $1.13 billion he fleeced from retail investors to upgrade his wife's engagement ring.

Assumptions and lack of information.

The sale was pre-planned for tax purposes and disclosed in the SEC filings prior to the IPO.

Zuckerberg's co-founder, a Brazilian-born resident of Singapore, renounced his U.S. citizenship before the IPO to avoid taxes.

Why do you say Zuckerberg fleeced the retail investors? What is your understanding of Morgan Stanley's role in the debacle? And technological glitches at Nasdaq?

 

[Imdanny]

Pump and dump.

http://www.dailymail.co.uk/news/article-2148839/Facebook-IPO-Morgan-Stanley-reimburse-investors-ripped-trades.html

"The news comes as even Facebook CEO Mark Zuckerberg dumped his own shares in the company, making $1.13billion as the stock nosedived, according to company filings."

But look on the bright side. He can use the $1.13 billion he fleeced from retail investors to upgrade his wife's engagement ring.

Assumptions and lack of information.

The sale was pre-planned for tax purposes and disclosed in the SEC filings prior to the IPO.

Zuckerberg's co-founder, a Brazilian-born resident of Singapore, renounced his U.S. citizenship before the IPO to avoid taxes.

Why do you say Zuckerberg fleeced the retail investors? What is your understanding of Morgan Stanley's role in the debacle?

"Zuckerberg’s plans to sell were revealed in documents filed in advance of the IPO on Friday, but the problems that have happened since cast them in a new light."

Read more: http://www.dailymail.co.uk/news/article-2148839/Facebook-IPO-Morgan-Stanley-reimburse-investors-ripped-trades.html#ixzz1vumZralO

Preplanned for tax purposes- yeah, right.

I've already explained how he fleeced retail investors. Pump and dump, which word didn't you understand?

Insiders, with insiders' knowledge, not shared with retail investors, went through with this entire debacle, but got out at close to $40. People like DH's daughter down $3,000. And it's going to get worse.

This is corruption of the market, the same thing we've been seeing from Wall Street for years.

I'm not going to be an apologist for these people, but if you want to, be my guest.

 

[mary poppins]

No need for snark.

I understood all of the words you wrote. You apparently didn't understand mine. I questioned why you were solely blaming Zuckerberg. While he's the face and name most associated with FB, there are many additional parties and problems involved in the situation.

Incidentally, what percentage of his shares did Zuckerberg sell? And how much were his estimated taxes?

 

[Dancing Fire]

[quote="Imdanny|


Insiders, with insiders' knowledge, not shared with retail investors, went through with this entire debacle, but got out at close to $40. People like DH's daughter down $3,000. And it's going to get worse.

This is corruption of the market, the same thing we've been seeing from Wall Street for years.

I'm not going to be an apologist for these people, but if you want to, be my guest.[/quote]


Danny...if you really that's the case then you can always short the market... there are no rules saying that you must bet the market to go up. i,myself from time to time do sell short on certain companies.

 

[0-0-0]

I just want to point out that pre-planned insider sales are pretty much the norm in IPOs. The actual intent is debatable, but in some situations it's simply a way to raise cash to pay taxes.

http://www.theconglomerate.org/2012/02/tax-consequences-of-facebooks-ipo-zuckerbergs-stock-stock-optons-and-srus.html

Should holders of nonqualifying stock options exercise those options at or after the IPO, they will encounter a taxable event regardless of whether they sell the stock. Zuckerberg has over 120 million stock options giving as compensation, which he plans to exercise. His exercise price is 6 cents. So, at something like $30/share,that's about $3.6 billion (say it like Mike Myers) of taxable ordinary income (the spread between exercise price and price at conversion). Zuckerberg's tax bill (federal and California) may well be one of the biggest tax bills ever. Apparently, he plans to sell enough shares to pay his taxes, which may reach $2 billion. Other holders will also face the same dilemma of having a tax bill even if they don't have any additional cash on hand.

 

[Dancing Fire]

I just want to point out that pre-planned insider sales are pretty much the norm in IPOs. The actual intent is debatable, but in some situations it's simply a way to raise cash to pay taxes.

http://www.theconglomerate.org/2012/02/tax-consequences-of-facebooks-ipo-zuckerbergs-stock-stock-optons-and-srus.html

Should holders of nonqualifying stock options exercise those options at or after the IPO, they will encounter a taxable event regardless of whether they sell the stock. Zuckerberg has over 120 million stock options giving as compensation, which he plans to exercise. His exercise price is 6 cents. So, at something like $30/share,that's about $3.6 billion (say it like Mike Myers) of taxable ordinary income (the spread between exercise price and price at conversion). Zuckerberg's tax bill (federal and California) may well be one of the biggest tax bills ever. Apparently, he plans to sell enough shares to pay his taxes, which may reach $2 billion. Other holders will also face the same dilemma of having a tax bill even if they don't have any additional cash on hand.

Danny,that's the reason why he must cash in on some shares... to pay his taxes. i don't understand why the liberals kept on playing the class warfare game when in fact the top 5% of the riches americans are paying most of the taxes.

 

[Imdanny]

No need for snark.

I understood all of the words you wrote. You apparently didn't understand mine. I questioned why you were solely blaming Zuckerberg. While he's the face and name most associated with FB, there are many additional parties and problems involved in the situation.

Incidentally, what percentage of his shares did Zuckerberg sell? And how much were his estimated taxes?

I don't know the answers to your questions. Thank you for clarifying that you were asking why I was solely blaming Zuckerman. This is not what I intended.

 

[Imdanny]

[quote="Imdanny|


Insiders, with insiders' knowledge, not shared with retail investors, went through with this entire debacle, but got out at close to $40. People like DH's daughter down $3,000. And it's going to get worse.

This is corruption of the market, the same thing we've been seeing from Wall Street for years.

I'm not going to be an apologist for these people, but if you want to, be my guest.

Danny...if you really that's the case then you can always short the market... there are no rules saying that you must bet the market to go up. i,myself from time to time do sell short on certain companies.[/quote]

DF, I would like to talk to you about the points you raise but I fear they'd take us far beyond the scope of this thread. Please let me just say kudos to you for being right about FB, I'm sorry your DD lost money, and I hope she'll make it back.

 

[Dancing Fire]

another UGLY day for FB...28.84 -$3.07..