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A comment on Morgan Stanley, Goldman Sachs Sued Over Facebook IPO.

Re:Morgan Stanley, Goldman Sachs Sued Over Facebook IPO by gisikw on Wednesday May 23, 2012 @12:12PM (#4013735)
I don't understand this. Selective dissemination of actual business data - fine, sue their asses. But projections are guesses - guesses without any guarantees. Facebook could magically rake in a billion tomorrow, or completely shut down - "projections" aside.

Why is it that there's a legal recourse because the projections person X got were different from what person Y got?

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Re:Morgan Stanley, Goldman Sachs Sued Over Facebook IPO by SagelyGuru on Wednesday May 23, 2012 @04:10PM (#4015058)
Because the stock price people are asked to pay at an IPO (or at any time) is based primarily on projections.

So, 'Mom and Pop' got projections A which made $38 sound like a reasonable price, whereas the big boys got projections B which told them to wait till the price settles on $10.

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Re:Morgan Stanley, Goldman Sachs Sued Over Facebook IPO by MartinCron on Wednesday May 23, 2012 @05:54PM (#4015518)
'Mom and Pop' got projections A which made $38 sound like a reasonable price

That's only half true. $38 never really looked like a reasonable price.

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