Facebook IPO

 

 

 

 

 

 

 

 

 

IPO or Initial Public Offering is the first sale of stock by a company to the public. It is the date the company first begins trading their stock in the open market.

We as Smart Traders do not buy IPO. There is always a good reason why…

The market had the very much anticipated FaceBook IPO and already the lawsuits are piling in from all directions (both retail and professional traders alike). Investors already feel misled that Morgan Stanley had negative information that they did not disclose to the public prior to the IPO.

That is why it is best to let the smoke clear and the dust settle. Historically when an IPO is launched and proceeds to drop by the degree they did just on the first day they have the tendency to see lower prices. Always best to wait.

We have a shortened trading week coming up as the stock market is closed on Monday since it is Memorial Day. We also have a NFP (non-farm payroll) event on Friday so be aware of holding trades through that event.

May everyone have a safe, pleasant, blessed and prosperous trading week!