After a brief reprieve in morning trading, Facebook’s stock once again closed lower on Wednesday, nearly $10 below its initial public offering price.
Facebook’s stock was taking a beating on the Nasdaq exchange Tuesday, falling below $30 for the first time since its initial public offering.
Morgan Stanley, the lead investment bank in Facebook’s troubled initial public offering, will compensate investors who overpaid when they bought Facebook’s stock in Friday’s IPO, according to a source familiar with the matter.
A group of shareholders have filed a lawsuit against Facebook, its executives and Morgan Stanley, the lead underwriter of the social networking firm’s initial public offering last week.
Facebook is in talks with the New York Stock Exchange to move its stock from the Nasdaq Stock Market after a botched initial public offering on Friday, according to a person familiar with the matter.
Regulators are examining whether Morgan Stanley, the investment bank that shepherded Facebook through its highly publicized stock offering last week, selectively informed clients of an analyst’s negative report about the company before the stock started trading.
After the social network’s stock fizzled on Friday in its long-awaited debut, its stock fell 11 percent on Monday, even as the rest of the stock market rallied.
Facebook stock rose more than 10 percent in the world’s biggest online social network’s debut as a publicly-traded company before retreating back to break-even levels.
Facebook has priced its initial public offering of stock at $38 per share. That’s the high end of its expected range of $34 to $38.
Now, even as investors take a stake in Facebook, its future remains contingent on a leader who is reluctant to reveal himself.