© 2011 wheresjenny.com facebook ipo. © 2011 wheresjenny.com facebook ipo facebook ipo subject of...
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© 2011 wheresjenny.com
Faceboo k IP
O
© 2011 wheresjenny.com
Faceboo k IP
O
Facebook IPO subject of mounting investigations, lawsuits
Facebook’s initial public offering is the subject of two congressional inquiries and mounting lawsuits.
The shares are still more than 14 percent below their $38 per share IPO price.
Investors are accusing the banks that arranged the IPO of not sharing important information about Facebook’s business prospects with some clients.
Several shareholders who bought stock in the IPO have filed lawsuits against Facebook
One lawsuit, filed claims Facebook’s IPO documents contained untrue statements and omitted important facts, such as a “severe reduction in revenue growth” that Facebook was experiencing at the time of the offering.
© 2011 wheresjenny.com
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Vocabulary Initial Public Offering: is the first sale of stock by a company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises.
Lawsuit: a claim or dispute brought to a law court for adjudication.
Investigations: carry out a systematic or formal inquiry into an incident or allegation so as to establish the truth.
Congressional: hearings are the principal formal method by which committees collect and analyze information in the early stages of legislative policymaking.
Underwriting: of shares is a guarantee or insurance given by the underwriter to the company that the shares offered to the public will be subscribed in full.
© 2011 wheresjenny.com
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English French
Initial Public Offering Premier appel public à
Lawsuit Procès
Investigations Enquêtes
Congressional Congrès
Underwriting Souscription
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Shares
The first sale of stock by a private company to the public.
What is an IPO ?
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Facebook decides to raise funds by issuing an IPO
SharesSharesShares
Shares valued at $38
Shares were trading below their initial
share price
Sold to public Investors accuse underwriters of not sharing important
information.
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Prospectus
Company Descriptio
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What is Prospectus?
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Guidelines for Smart Investing
1. Buy Low Sell High
2. Diversify
3. Buy and Hold
4. Decide when to sell
5. Finally stick with your plan