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SagelyGuru on May 23, 2012 | parent | context | favorite | on: Morgan Stanley, Goldman Sachs Sued Over Facebook I...

Because the stock price people are asked to pay at an IPO (or at any time) is based primarily on projections.

So, 'Mom and Pop' got projections A which made $38 sound like a reasonable price, whereas the big boys got projections B which told them to wait till the price settles on $10.

MartinCron on May 23, 2012 [–]

'Mom and Pop' got projections A which made $38 sound like a reasonable price

That's only half true. $38 never really looked like a reasonable price.

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