Facebook IPO – a huge tech failure, no doubt, its last traded value was even at $25.87, down 1.03 points (-3.83%), but there is still on the way, CNBC reported that Morgan Stanley, the lead underwriter, is lending share of social giant to short sellers. The day Facebook goes public; Morgan Stanley bought up shares from time to time in order to avoid declining the launch price.
The story sounds like this is that investors borrow shares and sell them with an aim to later rebuy them and give it back to the broker, if there is a decline in the price, they have to spend less and thus make profits. The move is a worrying kind of as the bank is lending another block of Facebook shares that can be sold short, resulting in making huge pressure on social giant.
BREAKING: Morgan Stanley now lending out Facebook shares to sell short – sources
— CNBC (@CNBC) June 5, 2012
