Lessons from Facebook

By now we all have heard about FB's "disastrous" IPO,with the stock price sinking more than 15% since it opened last Friday. Financially, in the short term, FB and its existing investors came out quite nicely in the deal, however. They were able to get 15% more when they sold their stock than what those who purchased it from them can now get for the same item. This is akin to the "Buy low, sell high" mantra of making money, and we all know that works quite well. In the long run, however, FB and the other sellers of FB stock that still retain ownership may end up wishing they had not made so much money off of those who purchased from them last Friday. The very public black eye for the very public company may do far more damage over the long haul than was made on that one day. This will be quite interesting to watch...