Facebook shares fall further on floatation concerns
23 May 2012
There may be more trouble ahead for Facebook with its public issue running into controversy amid reports of concerns about the way advisers disclosed information to investors.
As Facebook shares fell another 9 per cent yesterday, regulators said a review may be in order over the disclosure process to see if some investors got favourable access.
Both SEC and regulatory body FINRA have said they would look into the matter.
According to Morgan Stanley, lead underwriter on the flotation, it was "in compliance with all applicable regulations".
According to reports , Facebook's advisers might have revised their financial forecasts for the social networking company, which had been disclosed to only selected investors.
According to Mary Schapiro, chairman of the Securities and Exchange Commission, "There are issues that we need to look at," vietually endorsing chief executive, Richard Ketchum of the Financial Industry Regulatory Authority (FINRA), who said there were "matters of regulatory concern."
