Dumb Money

I borrowed this title from Wolfgang.

I keep reading that Facebook botched its IPO, e.g.

The botched offering of Facebook stock has raised several troubling questions, but at least we don’t have to worry about the one that plagues many IPOs: How are a few select investors able to buy in early at lower prices and then pocket huge profits when the trading frenzy begins? Among the many apparent missteps in its public debut, Facebook is accused of setting an opening price that was too high. Instead of spiking on the first day, shares inched up just 23 cents, to $38.23. The stock has mostly fallen since.

Doh!

Do they think Zuckerberg's job was to set the price low enough so his underwriters and early buyers would make a big profit? No. His job was to sell the company's stock for as much as the market would bear. Looks to me like he did a heck of a job with that.

Of course Wall Street may not love him, but that might not have been a big priority for him either.

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