Lessons For Investors From the Facebook IPO

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Lessons For Investors From the Facebook IPO

by Dan Brecher on May 28, 2012

Facebook highlights one of the most significant risks of pre-IPO investing—the value of the stock can go down as well as up. While Facebook’s initial public offering of stock raised $16 billion for the social media company, many investors have suffered steep losses as the value of the stock continues to decline.

In the latest legal news surrounding the IPO, three Facebook investors have filed a lawsuit in New York, alleging the company and its underwriters failed to properly disclose changes to analysts’ forecasts. The lawsuit seeks class-action status.

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