There is a lot of finger pointing going on about Facebook's initial public offering last Friday.
A lot of attention is being focused on the social media giant's Chief Financial Officer David Ebersman, who decided to increase the number of shares offered to investors by 25 percent days before the IPO. The Wall Street Journal writes, "That decision by the 41-year-old Facebook executive may have doomed any real chance the social-networking company had that its stock would jump on its first day of trading—a hallmark of successful IPOs."
As the Facebook IPO rapidly becomes a public-relations and legal nightmare for the company and its Wall Street underwriters, there are legitimate complaints to be made, but laying blame on the CFO is not one of them. (See: Facebook Fallout: Morgan Stanley May Face Legal Liability, Attorney Says)
Investors are really frustrated about three aspects of the IPO, which not long ago was being hyped as the deal of the century.
The first problem, a legitimate complaint, was that NASDAQ's computer systems failed on the morning of the deal. This led to many investors being unable to place or cancel stock orders or being left in the dark about whether their orders had been executed. This "glitch" may well have caused some investors to lose money.Read More »from Facebook IPO Fiasco: Here’s How Small Investors Got Rolled Over