How is what Zuckerberg did legal?

TheCentaur · 06-04-12, 03:36 PM

No one would do anything because he could strike a plague upon their farmville

YorkHunt · 06-04-12, 03:38 PM

This guy and his company have more personal information on everyone and he pulls shit like this....

WOAH

seaborneq · 06-04-12, 03:39 PM

What did he do?

EmpireMaker · 06-04-12, 03:43 PM

He sold his stock at top dollar and got that price due to the public buying in to all of the hype. What did he do wrong ? What did he do different than any other IPO (besides pricing it at the price people were going to buy it at) ?

TheCentaur · 06-04-12, 04:29 PM

I thought I heard there were some undisclosed legal issues or something that would have adverse effect on market price

YorkHunt · 06-04-12, 04:32 PM

Him knowing the stock will dip and issues that would lead to the drop and purposely selling off a mass of his own shares may be legal but morally correct?

mathdotcom · 06-04-12, 04:32 PM

What do you expect from an ugly jew who stole the idea from someone else to begin with

d2bets · 06-04-12, 04:35 PM

He actually only sold a very tiny fraction of his shares, enough to pay taxes due on his options. Doesn't mean there couldn't be wrongdoing, but keep that in mind. It's not like he cashed out of Facebook.

RogueScholar · 06-04-12, 04:35 PM

d2bets · 06-04-12, 04:37 PM

Originally posted by YorkHunt

Him knowing the stock will dip and issues that would lead to the drop and purposely selling off a mass of his own shares may be legal but morally correct?

He had planned to sell shares at the IPO long ago, was disclosed in the prospectus, in order to pay taxes. I believe he sold less than 5% of his shares. Doesn't mean there couldn't have been wrongdoing in the prospectus, but selling the shares was not morally wrong. Really he had no choice. Had had options at 6 cents a share. Gotta pay the tax man. His wealth is still tied to Facebook.

mynameismud · 06-04-12, 04:38 PM

Originally posted by RogueScholar

a4u2fear · 06-04-12, 06:11 PM

Originally posted by TheCentaur

No one would do anything because he could strike a plague upon their farmville

i hope no one plays that gay game.

gafl · 06-04-12, 07:16 PM

Facebook did raise the price of the IPO and added more stock to the mix. Real problem is that before the IPO, four of the major underwriters lowered the earnings and revenue estimates on the stock. This news was only given to their big investors and was not made public knowledge.

neverstoppers23 · 06-04-12, 07:55 PM

everyone other rich person who bought it before the price came out to the public sold it, you had to be rich to play in this business. and this was an easy investment for every rich person who wanted in.

i didn't see any financial adviser on tv saying you should buy facebook stock the day it came out. its really not that hard to seen it was over-valued as most tech-stocks as they come out.

people are fools, trying to make easy money in the stock marker short-term. its just as bad as gambling.

dice · 06-04-12, 09:56 PM

Right before the ipo they raised the market cap another 25% or so. Most of the videos on FB are youtube videos so I'm pretty sure that Google is the one making the money on the youtube videos with ads in them. How much will FB be worth when it's no longer "cool" in a couple of years? FB = S-C-A-M!

Pauulzcappin · 06-05-12, 12:14 AM

Inside info wins. As always.

Grits n' Gravy · 06-05-12, 01:03 AM

Originally posted by mathdotcom

What do you expect from an ugly jew who stole the idea from someone else to begin with

Have you looked in a mirror recently?

eidolon · 06-05-12, 01:25 AM

Originally posted by RogueScholar

Are you saying Obama is a Leprechaun?

Balco10 · 06-05-12, 02:57 AM

The stock market is the same as gambling now...

Balco10 · 06-05-12, 02:58 AM

Fuk facebook and hope it goes down to siri levels...

MUHerd37 · 06-05-12, 04:20 AM

Insider trading. He'll do some time.

darrell74 · 06-05-12, 04:36 AM

Originally posted by YorkHunt

Guy is still a citizen is this legal him selling off most of his stock knowing its not worth what the IPO is at??

100% agree with you

I and many others would just like to acknowledge that we understand that they are getting away with it

eleuropeano · 06-05-12, 08:47 AM

You guys don't understand how an IPO works I think. The guy just goes to the bank (a couple of them in this case) and says I wanna sell that many shares of my company to the public. The bank says OK, that will be 4%, thank you very much and then goes and sells the shares at the maximum price at which they can place the whole lot.

Now, if the guy misrepresented some numbers or info in the offer documents he could be liable. But that is not the case, Facebook's earnings on paper were pretty mediocre and buying something at 100 times earnings should raise red flags for any mildly knowledgeable investor. But sheep still lined up in the expectation there will be bigger sheep who will buy the stock later at a higher price. Didn't happen this time.

Now, there were some allegations that the banks actually lowered their forecasts just before the IPO and only told part of their clients, but that is a problem for them and their clients.