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Facebook IPO subject of mounting investigations, lawsuits

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.

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Facebook IPO subject of mounting investigations, lawsuits

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  1. 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.

  2. 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.

  3. What is an IPO ? The first sale of stock by a private company to the public. Shares

  4. Shares valued at $38 Facebook decides to raise funds by issuing an IPO Shares Shares Shares Sold to public Shares were trading below their initial share price Investors accuse underwriters of not sharing important information.

  5. What is Prospectus? Company Description _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Prospectus

  6. Guidelines for Smart Investing Buy Low Sell High Diversify Buy and Hold Decide when to sell Finally stick with your plan

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