14 ms·
due to the massive information asymmetry, didn't FB have a legal and moral obligation to provide an accurate valuation? this was my understanding from reading a
by dustingetz 14y ago
due to the massive information asymmetry, didn't FB have a legal and moral obligation to provide an accurate valuation? this was my understanding from reading all the post-IPO anti-facebook fallout articles.
- jeremyjh 14y agoA fiduciary responsibility to their shareholders (to be)? I'm not sure. I know that selling stock is not quite the same as selling a used car.
- emmett 14y agoWhat do you mean by an "accurate valuation"? They have a responsibility to provide accurate information about their business, but the valuation is ultimately set by the market, not them.
- jusben1369 14y agoThat's what the S1/prospectus was for. They're not being sued because there's nothing coming to light that they didn't cover. It's just the exuberance is fading as reality is setting in.
- rayiner 14y agoFB had a legal and moral obligation to disclose the information they had. There is no allegation they didn't. Cuban's point that "nobody sells stock they think is going up" is a great one. Stock transactions are all about differing valuations. If you estimate the value of a stock at X+5, and I estimate it at X, I'm going to sell it to you at X+5. You're entitled to have your own estimation of the value of the stock.