Thread: Is my friend lying about his $33 Facebook fb shares?

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  1. #1
    Broncokkl
    Guest

    Default Is my friend lying about his $33 Facebook fb shares?

    I've been in a hot debate with a buddy of mine and I wanted to get some additional knowledge before I slap him in the face.

    So today was a big day with facebook being released. I'm sure we all watched the prices skip between $38 (IPO price) and $42.

    My buddy says he got in at $33. I immediately called BS. I'm going to copy and paste his response:

    "I got a call from my broker at 12:30 that the buy order was approved at $33."
    I said BS.
    He responds "Large firms bought the stocks in high volumes a lot lower than 38. 38 is what they are trading at to the public. My dads broker gave me 100 and my dad 900 shares at $33 and some change."

    Now here is what I know..It IS possible for a firm/bank/investor to have made deals with FaceBook prior to them going public..where by when one day, FB goes public, the "firm" gets x amount of shares at $33 in exchange for a very large amount of cash today.

    IF that were the case, what my friend is saying is NOT correct. On top of that, I don't care if my brother is asking for shares, I'm not selling them for less than $38.

    I still don't want to call BS if it IS possible for him to have these shares at $33. So I ask you knowledgable people - What are realistic ways my friend could have bought shares at $33..
  2. #2

    Default

    I think you should slap your friend in the face.

    I think the stock is worth about $3.00 a share, and that's only because of the demand. People who like babbling on the site want to own the company. So I wouldn't be mad at your friend if I were you, I would feel sorry for him and his dad for buying from all the insiders dumping their shares today.
  3. #3
    Businessnek
    Guest

    Default

    I would say your friend is lying. A lot of friends on Facebook updated their status to read that they bought so many odd shares. Just about all of them wouldn't even know how to open a brokerage account. Everyone wants to be involved and be part of Facebook, hipsters if you ask me.

    $33 a share seems slap worthy. From what I read a lot of brokers did not even have it available when the buyers wanted it. Not only that but there was a lot of confusion whether or not buy and sell orders even got through for several hours. I don't think your friends dad got in line ahead of all the big wigs who just could not go without owning some Facebook.
  4. #4

    Default

    We ended up going back and forth and he couldn't explain it. Finally I reached the conclusion that his dad most likely paid market price and then gave 100 of his 1000 shares to his son at a discount.

    I texted him today that even at his great deal, the stock is below $33 now. He responded that it will be between $300 and $400 a share in a few years.

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