[spacehome]

> Do you think when FB cratered after the IPO Mark Zuckerberg was smiling because he got a great price for the shares he sold?

Yes, as a matter of fact, that's exactly what I think, and I don't blame him a bit or even think that's a bad thing at all.

You're framing it as the alternative being that the stock price is the same on the first day and doesn't crater. The actual alternative is that Mark sells his shares for the depressed price.

[yellowstuff]

FB stock falling was actually a big embarrassment for both the company and the banks that ran the IPO. At best Zuckerberg had mixed feelings about selling at the (temporary) top of the market.

But my point was more that the institutional investors want a low IPO price and have the power to make an IPO fail if they don't get it, the banks running the IPO want a low price to make the investors happy, and the founders selling into an IPO have the least power and also have mixed incentives about the price.