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To: SeekAndFind

In other words, during the marketing of the Facebook IPO, investors who did not hear about these underwriter estimate cuts were placed at a meaningful and unfair information disadvantage. They did not know what a lot of other investors knew, and they suffered for it.


2 posted on 05/22/2012 6:41:12 AM PDT by SeekAndFind (bOTRT)
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To: SeekAndFind
DUPLICATE POST

http://www.freerepublic.com/focus/f-chat/2886596/posts
3 posted on 05/22/2012 6:42:37 AM PDT by Sudetenland (Anybody but Obama!!!!)
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To: SeekAndFind
The question is what went out in the S1. Judging from this statement it looks like an amended S1 was issued:
According to Reuters, the underwriter analysts cut their estimates after Facebook issued an amended IPO prospectus in which the company mentioned, vaguely, that recent trends in which users were growing faster than revenue had continued into the second quarter.
If it was then there is no FD issue. The question of the FB communication with the analysts is pretty big. There is supposed to be a so called "Chinese Wall" between the underwriters (who are allowed to see estimates and would be told directly of forecast changes) and the analysts who can only deal with public information. If they had those discussion then there is a big issue.
4 posted on 05/22/2012 6:53:38 AM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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