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0 pointsh1srf13y ago0 comments

Merrill shorted FB at the IPO? I seriously doubt that. First of all, I don't think there would be enough inventory to borrow for a few days. Secondly, the borrow cost would have been astronomical for those first few days. There was a WSJ article that talked about the borrow dropping from 40% to 6% about a week after the IPO. Are you talking about that period?

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robbiep13y ago

No h1srf I don't know anything about merrill shorting it, I was responding to wkasel's assertion in the second post of this thread that they did so. I have done no research regarding shorting on fb in this period.

However Morgans would have made a double killing in the post-ipo period having oversold the allocation and now being able to fill those orders cheaply on the secondary market (assuming they didn't issue new stock to fill the orders)

wkasel13y ago

I back everything up with facts amigo. They shorted it $2.4B.

http://blogs.reuters.com/felix-salmon/2012/05/21/morgan-stan...

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0 pointsh1srf13y ago0 comments

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robbiep13y ago

wkasel13y ago

I back everything up with facts amigo. They shorted it $2.4B.

http://blogs.reuters.com/felix-salmon/2012/05/21/morgan-stan...

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