Insiders made a bundle on secondary stock issues

SJ Mecury News ^ | 3/19/03 | Deborah Lohse and Jack Davis

[NormsRevenge]

Many young Silicon Valley companies that sold their first shares of stock to the public during the Internet boom generated spectacular first-day gains.

While those initial public offerings got the headlines, the real money came later -- as companies sold additional shares after stock prices had soared.

[NormsRevenge]

Goldman Sachs

[NormsRevenge]

fyi Ping

[txzman]

Yep good 'ol fair capitalism.

Have your Goldman Sachs or Citibank analyst bribe influential folks on Wall Street for good ratings, appear on TV pumping the stock, share IPOs with those who can furhter the noise.

Sit back, wait for stock explosion and sell quickly. Pocket money and start shopping for boats.

The company and its employees? Oh, they were just a diversion. It sure sounded good, eh?

And before people start flaming, don't waste yer breath on how that is life in a cpaitalist society. The "boom" was a perfect storm of moral bankruptcy, greed and personal corruption.

A sad coloring of America.

[Libertarianize the GOP]

bump

[LibertarianInExile]

Thank GOD we have the SEC, which is now actively aware of these problems and is making sure that the folks who cheated thousands out of millions are paying for it.

Oh, wait. That's not true. Guess law-and-order only applies when the people committing crimes don't donate to the party. Let me know when, er, if someone goes to jail for the biggest white collar crime spree since the S&L scams. I'll try not to hold my breath.

I'm so sick of government only enforcing the laws that don't affect their party coffers.

[q_an_a]

In addition, many of the insiders have given huge amounts of money to Klinton and Co. They just don't understand why everyone can't see the value of a communist system, after all they are proof that it works.

What hog wash these cowards are. The are cowards cause they shot a lot of big and small people in the back and nobody saw them do it.

[Moonman62]

The "boom" was a perfect storm of moral bankruptcy, greed and personal corruption.

The boom was an effect, not a cause. It was the result of bad currency and monetary policy from Bob Rubin and Alan Greenspan, exacerbated by Y2K preparations and large amounts of money coming into our markets to weather Y2K. There were corrupt people before the boom, during the boom, and after the boom. Thankfully, they are a small minority. Long live capitalism and market economics.

[Moonman62]

If anything, secondaries have a braking effect on a boom in stock prices by creating more supply. There should have been more of them.

[txzman]

I do not agree that "it has always been so". I speak to a number of retired folks who had very high positions of authority in both government and business and they say the SAME things - a high percentage of people at the top clearly display morally bankruptcy in both busines and government.

And most importantly, the multiple of inflation-adjusted earnings at the top of companies are WAY beyond what Frisk, Mellon, Carnegie and the like ever dreamed of - it makes the "Robber Barron" gang look like Salvation Army workers.