(MoneyWatch) Earlier today, I FB) shares to pop on the first day of trading was a sign of success, in that the pricing was fair. After falling all morning, it looks like even more of a success for Facebook.arguing that the failure of Facebook's (
A stock has an initial public offering at a price the investment bankers think that they can sell to investors. Granted, most of the investors are really the best customers of the bankers. Initially, the price was set at $34 a share but the interest was so high, the price was raised to $38 a share and $16 billion was raised for the company.
As noon, it's looking like the $34 price was closer to fair value. This means that Facebook raised an extra $1.7 billion over its current fair price. That's a transfer of money to those who owned pre-IPO shares (Mark Zuckerberg is by far the largest) from investment bankers and their insiders who bought the new stock on Friday.
Even though Mark Zuckerberg has to answer to Wall Street, it doesn't mean he has to transfer his wealth to Wall Street. While it's still early in the game, I'd put the score at Zuckerberg 2; Wall Street 0.