Never has there been excitement about an initial public offering of corporate stock to match the buzz last week surrounding the possibility of getting a piece of Facebook.
Months of anticipation led to up to the moment on May 17 when Facebook founder Mark Zuckerberg rang the Nasdaq opening bell for a trading session that saw the social media giant raise $16 billion on sales of shares valued at $104 billion. Zuckerberg became a billionaire in a single day. But trading glitches marred the session and only a week after the IPO, Facebook share prices are limp and lawsuits are already being filed on allegations of shady dealings by company officials and the major banks that assisted Facebook’s stock launch.
If this IPO were a page on the social network’s website, it seems it wouldn’t have many friend requests and “likes” would be few and far between. James B. Stewart, "Common Sense" columnist for the Business Day section of The New York Times, joins Jeff Spurgeon to talk about what went wrong and who bears the responsibility.