What Role Did Facebook’s Underwriters Play In Stabilizing The Stock’s Price On Its IPO Day?
Facebook’s initial public offering launched May 18 at $38 per share, and the social network’s stock ended the trading day up just 23 cents. But according to a blog post on Liberty Street Economics, Facebook’s underwriters were a major factor in keeping the stock from plummeting on its first day.
Facebook’s initial public offering launched May 18 at $38 per share, and the social network’s stock ended the trading day up just 23 cents. But according to a blog post on Liberty Street Economics, Facebook’s underwriters were a major factor in keeping the stock from plummeting on its first day.
Liberty Street Economics is a blog hosted by the Federal Reserve Bank of New York website, and the post about day one of Facebook trading was written by: Thomas Eisenbach, an economist in the money and payment studies function of the research statistics group; David Lucca, an economist in the capital markets function; and Karen Shen, an undergraduate intern in the capital markets function.
Eisenbach,
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