[QODLink]
Americas
Regulators demand review of Facebook's IPO
Financial services group ordered to account for handling of share sales for social network as it loses value on NASDAQ.
Last Modified: 23 May 2012 08:29

As Facebook's share prices continue to fall, US regulators have called for a review of last week's Initial Public Offering (IPO) of the world's largest social networking site.

The financial services group Morgan Stanley has been ordered to account for its handling of the sale of Facebook's shares.

Of particular concern for regulators at the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FIRA) is a report that the consumer internet analyst at the stock's lead underwriter, Morgan Stanley, cut revenue forecasts for Facebook in the days before the offering, information that may not have reached many investors before the stock was listed.

Traders questioning whether the initial share price was realistic to begin with have been further shaken by the company's decreasing value on the NASDAQ.

On Friday, the day of the IPO, the firm was valued at over $100bn but that has has been more than decimated, dropping by $16bn in under a week.

Al Jazeera's Dominic Kane reports.

Source:
Al Jazeera
Topics in this article
People
Country
Organisation
Featured on Al Jazeera
Your chance to be an investigative journalist in Al Jazeera’s new interactive game.
An innovative rehabilitation programme offers Danish fighters in Syria an escape route and help without prosecution.
Street tension between radical Muslims and Holland's hard right rises, as Islamic State anxiety grows.
Take an immersive look at the challenges facing the war-torn country as US troops begin their withdrawal.
Featured
Despite 14-year struggle for a new mosque in the second-largest city, new roadblocks are erected at every turn.
Authorities and demonstrators have shown no inclination to yield despite growing economic damage and protest pressure.
Lebanese-born Rula Ghani may take cues from the modernising Queen Soraya, but she'll have to proceed with caution.
One of the world's last hunter-gatherer tribes has been forced from the forest it called home by a major dam project.
Chinese authorities scramble to cut off information on Hong Kong protests from reaching the mainland.