Butters 0 #1 May 24, 2012 ... when this occurs?"That looks dangerous." Leopold Stotch Quote Share this post Link to post Share on other sites
shah269 0 #2 May 24, 2012 You loose money? They make money. You make money? They make money. Why didn't i think about it!Life through good thoughts, good words, and good deeds is necessary to ensure happiness and to keep chaos at bay. The only thing that falls from the sky is birdshit and fools! Quote Share this post Link to post Share on other sites
kelpdiver 2 #3 May 24, 2012 second to last paragraph is key: Quote Regulators don't seem particularly concerned with the practice either. Walter Van Dorn, a partner at law firm SNR Denton who spent seven years at the Securities and Exchange Commission in part monitoring IPOs, says that the practice of over allotment in IPOs was well-known. "The SEC doesn't see it as a conflict of interest," says Van Dorn. Indeed, it's unlikely that Morgan was rooting for Facebook's stock to drop. The deal has likely been a big hit to the reputation of its tech banking team, which had generated huge fees for the firm. On day 1 they were spending money to prop up the stock, keep it above 38. They were not making up for any overallocations (if they existed) with purchases days later. The column feels like a bit of a hit piece given that it's conjecture with no numbers behind it. MS has pissed a lot of people off over the years and this feels like a bit of payback. Quote Share this post Link to post Share on other sites
rwieder 0 #4 May 27, 2012 QuoteIs there a problem with Wall Street? A really big MORALITY problem. Ever see Michael Douglas in Wall Street, Money Never Sleeps?-Richard- "You're Holding The Rope And I'm Taking The Fall" Quote Share this post Link to post Share on other sites
loumeinhart 0 #5 May 27, 2012 QuoteYou loose money? They make money. You make money? They make money. As if the transaction takes place with you first, then rolls up to wallstreet. Get a clue Quote Share this post Link to post Share on other sites
billvon 3,120 #6 May 27, 2012 >You loose money? >They make money. >You make money? >They make money. Which is also true of your bank, your insurance company, your tax guy etc. In general it's called "paying for services." Quote Share this post Link to post Share on other sites
RonD1120 62 #7 May 27, 2012 Quote... when this occurs? No, there is no problem. Finance 101, The Free Market Place. The object is to make a profit. I don't know how to play the game. I admire and encourage those who do. My granddaughter's husband believes he understands the game. When he returns from Afghanistan, I hope he is able to support her in the manner to which she would like to become accustomed.Look for the shiny things of God revealed by the Holy Spirit. They only last for an instant but it is a Holy Instant. Let your soul absorb them. Quote Share this post Link to post Share on other sites
pirana 0 #8 May 29, 2012 The problem isn't with Wall Street. Market forces are good, competition is good. The problem is they are allowed to buy influence and thwart attempts at effective regulation. Most of our problems would be solved if getting elected wasn't so directly tied to raising money." . . . the lust for power can be just as completely satisfied by suggesting people into loving their servitude as by flogging them and kicking them into obedience." -- Aldous Huxley Quote Share this post Link to post Share on other sites
weekender 0 #9 May 30, 2012 trying to explain the greenshoe option to people in the business is confusing. trying to get non professionals to understand it is nearly impossible. this reporter failed. The company is aware of the greenshoe because its discussed and agreed on before the IPO. Investors who buy the stock are told of the optinon in the prospectus. also, its common knowledge to anyone who cares to actually do research on the markets. if you arent aware its your on fault and you should not buy IPO's which are defined as higher risk investments anyway. all banks have market makers that can short stock. their purpose is soley to provide liquidity. they are like cashiers at the grocery store. if someone recommends you buy a can of peas and dont like them do you get mad at the cashier or the person who recommended it? the traders(market makers) sole purpose is to provide you the stock YOU decided to buy. if he doesnt have it, he can short it to you and buy it later. it is how every financial market works everywhere in the world."The point is, I'm weird, but I never felt weird." John Frusciante Quote Share this post Link to post Share on other sites
