If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Gizmodo)   Widow who lost her entire life savings in the Facebook IPO wants her money back   (gizmodo.com) divider line 51
    More: Unlikely, IPO, Financial Industry Regulatory Authority, widows, Vanguard  
•       •       •

5383 clicks; posted to Business » on 07 Nov 2012 at 11:17 AM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



51 Comments   (+0 »)
   
View Voting Results: Smartest and Funniest

Archived thread

First | « | 1 | 2 | » | Last | Show all
 
2012-11-07 10:22:58 AM  
It truly sickens me that in an age where everyone has a microwave oven and a refridgerator in every household, we have this hi-tech IPO shiat - it simply ain't workin.

Let me tell you, those facebook clowns aren't dumb. Their ill gotten gain can be had for practically no effort on their part - truly shameful.

/ Wouldn't have happened under a Romney administration
 
2012-11-07 11:36:49 AM  
Lost it ALL did she? I guess I missed the part where facebook stock went to zero.

/dnrtfa
 
2012-11-07 11:38:47 AM  

SevenizGud: Lost it ALL did she? I guess I missed the part where facebook stock went to zero.

/dnrtfa


Margin calls?

/dnrtfae
 
2012-11-07 11:43:56 AM  
There has to be some serious hyperbole going on - 6,200 shares, even if the trade were executed at the peak - would have been purchased for $279K, and sold for no worse than $108,810.

Unless she asked for 6,200 now worthless call options, I don't know.
 
2012-11-07 11:47:10 AM  
You only get a do-over if you are rich.

Stock market tanks for 10 minutes? Let's cancel the trades.
 
2012-11-07 11:50:41 AM  
Going for the brass ring and fell off the horse did she?
The market is nothing but glorified gambling at best.
Sometime you win, sometimes you loose.
DJIA is down 284.40 right now, we all loose.
 
2012-11-07 11:50:54 AM  
You mean there is some risk in the stock market!?!? GTFO!!! Everyone with a bit of sense said stay away from this turd of a stock. Hell even I looked at it and said "No thanks."
 
2012-11-07 11:51:28 AM  
Stupid is SUPPOSED to hurt.
 
2012-11-07 11:55:55 AM  
FTA: A lot of average joes put on their faux-finance cap during the Facebook IPO and hoped it would get them rich.

Here's a tip for idiot investors. Or just idiots. If you are doing something in which you need to hope to get rich, you are doing what's known as "gambling". And when you are doing that, you might get rich, but it's also possible that you might get less-rich. If you can't afford to become less-rich, you shouldn't be gambling.
 
2012-11-07 11:56:50 AM  

Elzar: It truly sickens me that in an age where everyone has a microwave oven and a refridgerator in every household, we have this hi-tech IPO shiat - it simply ain't workin.

Let me tell you, those facebook clowns aren't dumb. Their ill gotten gain can be had for practically no effort on their part - truly shameful.



We gotta install microwave ovens
Custom kitchen deliveries
We gotta move these refrigerators
We gotta move these colour TV's

Now that ain't workin' that's the way you do it
Lemme tell ya them guys ain't dumb
 
2012-11-07 12:02:38 PM  
Disclaimer: I don't know jack shiat about financial markets.

When Facebook went public, I honestly couldn't understand why it was valued so high, and nobody could explain it. Ads? Really? Nobody I've ever known has knowingly clicked an ad on Facebook, and that includes people who post pics of their kids all day, every day. Data? Maybe, but right now, what are they going to do with it except sell it for pennies?

Maybe you financial wizards can tell me why FB's valuation was so high in the first place?
 
2012-11-07 12:07:10 PM  

oh_please: Maybe you financial wizards can tell me why FB's valuation was so high in the first place?


Because we already knew that Instagram was worth $1B, and Facebook was at least 100x as valuable as that.

lucksi: You only get a do-over if you are rich.

Stock market tanks for 10 minutes? Let's cancel the trades.


Bears repeating.
 
2012-11-07 12:10:21 PM  

Bhruic: FTA: A lot of average joes put on their faux-finance cap during the Facebook IPO and hoped it would get them rich.

Here's a tip for idiot investors. Or just idiots. If you are doing something in which you need to hope to get rich, you are doing what's known as "gambling". And when you are doing that, you might get rich, but it's also possible that you might get less-rich. If you can't afford to become less-rich, you shouldn't be gambling.


And more generally: when the average schmuck is talking about how something is a great investment, IT'S TOO LATE TO GET IN.

Did people not learn this during the housing bubble?
 
2012-11-07 12:13:03 PM  
Tough schiat woman. *you* decided to gamble with your life savings and it was you that told your broker to put it all on a wildly overpriced ipo. Unless she bought a ton on margin, she didn't lose it all.
 
2012-11-07 12:14:37 PM  
The stock market doesn't really work that way.
 
2012-11-07 12:23:11 PM  
Seems like she initiated a buy prior to the IPO then decided to cancel once Morgan Stanley devalued the stock but he broker went ahead with the buy order anyway.

If that's the case and she can prove it, she'll get her money plus damages from Vanguard.

Doesn't really involve Facebook proper.

/Level headed response after reading article
//Ignore me and continue on
 
2012-11-07 12:23:16 PM  
SELL, MORTIMER, SELL!!!

/no sympathy
//wouldn't be biatching if it had gone up
///tough luck, toots. suck it up
 
2012-11-07 12:34:01 PM  

oh_please: Disclaimer: I don't know jack shiat about financial markets.

When Facebook went public, I honestly couldn't understand why it was valued so high, and nobody could explain it. Ads? Really? Nobody I've ever known has knowingly clicked an ad on Facebook, and that includes people who post pics of their kids all day, every day. Data? Maybe, but right now, what are they going to do with it except sell it for pennies?

Maybe you financial wizards can tell me why FB's valuation was so high in the first place?


I never understood it. I stayed far away from it for two reasons. 1) It had no positive earnings potential in sight. 2) It had no growth potential that I could understand. In hindsight given how popular it was with the layman investor I should have seen it as the disaster it became.
 
2012-11-07 12:38:24 PM  

Gosling: The stock market doesn't really work that way.


Theoretically it can, if Facebook had filed for bankruptcy.
 
2012-11-07 12:42:47 PM  
One poor woman, Uma Swaminathan, lost her entire life savings and kinda wants a re-do.

Uma Swaminathan, who's a retired teacher


Stupid is as stupid does.
 
2012-11-07 12:46:46 PM  
She asked for the order to be cancelled prior to trading and they didn't cancel it. She has a legit gripe.
 
2012-11-07 12:53:35 PM  

hp6sa: There has to be some serious hyperbole going on - 6,200 shares, even if the trade were executed at the peak - would have been purchased for $279K, and sold for no worse than $108,810.

Unless she asked for 6,200 now worthless call options, I don't know.


From a Reuters report: "Her $1.9 million claim includes $105,000 for compensatory damages, $500,000 for punitive damages, $1 million for "pain and suffering" and $315,000 in treble damages, which are typically awarded in certain instances of fraud."
 
2012-11-07 12:58:42 PM  

DoBeDoBeDo: Seems like she initiated a buy prior to the IPO then decided to cancel once Morgan Stanley devalued the stock but he broker went ahead with the buy order anyway.

If that's the case and she can prove it, she'll get her money plus damages from Vanguard.

Doesn't really involve Facebook proper.

/Level headed response after reading article
//Ignore me and continue on


Came here to say this.

But I also want to add that I doubt she told the broker to cancel in time. I'm guessing that she heard that the IPO had been downgraded after the broker executed the buy order and now she is having buyers remorse.
 
2012-11-07 01:00:48 PM  

Dr.Fey: Elzar: It truly sickens me that in an age where everyone has a microwave oven and a refridgerator in every household, we have this hi-tech IPO shiat - it simply ain't workin.

Let me tell you, those facebook clowns aren't dumb. Their ill gotten gain can be had for practically no effort on their part - truly shameful.


We gotta install microwave ovens
Custom kitchen deliveries
We gotta move these refrigerators
We gotta move these colour TV's

Now that ain't workin' that's the way you do it
Lemme tell ya them guys ain't dumb


Hey, some people are in dire straits in this economy.
 
2012-11-07 01:01:01 PM  

DoBeDoBeDo: Seems like she initiated a buy prior to the IPO then decided to cancel once Morgan Stanley devalued the stock but he broker went ahead with the buy order anyway.

If that's the case and she can prove it, she'll get her money plus damages from Vanguard.

Doesn't really involve Facebook proper.

/Level headed response after reading article
//Ignore me and continue on


i think Vanguard is in the transistion of becoming another company under another name. i wonder how that will affect Ms. Stupid Teacher, Investor Extroidainaire.
 
2012-11-07 01:02:00 PM  

BarkingUnicorn: hp6sa: There has to be some serious hyperbole going on - 6,200 shares, even if the trade were executed at the peak - would have been purchased for $279K, and sold for no worse than $108,810.

Unless she asked for 6,200 now worthless call options, I don't know.

From a Reuters report: "Her $1.9 million claim includes $105,000 for compensatory damages, $500,000 for punitive damages, $1 million for "pain and suffering" and $315,000 in treble damages, which are typically awarded in certain instances of fraud."


Who does she want this money from? Facebook, Vanguard, Obama?
 
2012-11-07 01:03:36 PM  

hp6sa: Unless she asked for 6,200 now worthless call options, I don't know.


Vanguard is extremely conservative about granting its clients the privilege to trade options. I applied earlier this year and was rejected. They also have different tiers of options trading. This story is most likely hyperbole.

However...

abhorrent1: She asked for the order to be cancelled prior to trading and they didn't cancel it. She has a legit gripe.


I don't know the details but I'm guessing she does not have a legit gripe. Once a market order is in, there's just no way you're getting it back. Live with it. And don't play around with your life savings.

/playing around with some pre-tax cash that I rolled over from my 401k to my individual IRA
 
2012-11-07 01:11:59 PM  
Writer/subby is currently in the BCS standings to play in the hyperbole national championship this year, but in regards to the woman:

Yet another person dropped their only egg basket? For shame...
 
2012-11-07 01:12:51 PM  

abhorrent1: She asked for the order to be cancelled prior to trading and they didn't cancel it. She has a legit gripe.


With her broker not much of anybody else and certainly not 2 million dollars worth. If she got her sell order in before the end of the day she would still have gotten almost all of her money back. When JP backed they IPO they supported the stock price through the IPO essentially ensuring that the price closed no lower than the open. In fact by leaking to their top clients before they ipo they hurt themselves badly. With nobody else wanting to buy the stock they had to buy a crap load themselves knowing they'd never get their money back. I lol-ed. She should be able to get anything she lost back between her crappy broker and JP but 2 million is just stupid. 

For that matter I believe part of the problem was that the orders went in at open but execution got screwed up. people thought their orders didn't go so they re-issued and then would get confirmation of multiple orders later. So she can't really change her mind after the order is sent. On the up side her crappy brokerage that failed to talk her out of such a stupid investment probably had to eat 3 time her loses because the probably sent her order 3 or 4 times before finding out they all executed. More to lol about.
 
2012-11-07 01:42:16 PM  

hp6sa: There has to be some serious hyperbole going on - 6,200 shares, even if the trade were executed at the peak - would have been purchased for $279K, and sold for no worse than $108,810.

Unless she asked for 6,200 now worthless call options, I don't know.


Margin call?
 
2012-11-07 01:48:43 PM  
Diversification.
 
2012-11-07 01:59:38 PM  

oh_please: Disclaimer: I don't know jack shiat about financial markets.

When Facebook went public, I honestly couldn't understand why it was valued so high, and nobody could explain it. Ads? Really? Nobody I've ever known has knowingly clicked an ad on Facebook, and that includes people who post pics of their kids all day, every day. Data? Maybe, but right now, what are they going to do with it except sell it for pennies?

Maybe you financial wizards can tell me why FB's valuation was so high in the first place?


The banner ad's aren't the big deal. In theory, its the Like button and data mining.

When your trying to decide which movie to go to, you probably ask your friends if they are going to see it or have already seen it. If 10 of your friends say a movie is good, your probably going to give it a shot. Likewise, if you see a crap ton of items in your news feed saying that 90 of your friends on Facebook like a particular movie, you may check it out.

If you happen to like a particular video game series, or musician, and you check facebook regularly, you might see an ad telling you about an upcoming new game or maybe the musician is doing a concert in your city. Maybe you don't buy it. But if they know you like that stuff, it makes more sense to advertise to you than say your 76 year old father.

Well targeted advertising means your more likely to give a damn about the product and buy it. It means that the sellers can probably buy fewer ads to get the same results. And they don't need to sell the info. They just use the info to make sure the ads get to the right people. Pennies per advertisement is not much. But pennies per ad per user in a pool of a billion users? and they can sell adspace for any facebook user to many different buyers many times? Plenty of potential. Finding the right business model still needs work though.

END COMMUNICATION
 
2012-11-07 02:04:47 PM  

abhorrent1: She asked for the order to be cancelled prior to trading and they didn't cancel it. She has a legit gripe.


I agree. They should refund her brokerage commission for that trade.
 
2012-11-07 02:12:44 PM  

Dr.Fey: Elzar: It truly sickens me that in an age where everyone has a microwave oven and a refridgerator in every household, we have this hi-tech IPO shiat - it simply ain't workin.

Let me tell you, those facebook clowns aren't dumb. Their ill gotten gain can be had for practically no effort on their part - truly shameful.


We gotta install microwave ovens
Custom kitchen deliveries
We gotta move these refrigerators
We gotta move these colour TV's

Now that ain't workin' that's the way you do it
Lemme tell ya them guys ain't dumb


www.retro-cafe.com


you got that song in my head now. You ass!
 
2012-11-07 02:43:53 PM  
Daddy, what do retards sound like?

Like this son, courtesy of tfa:
"A lot of average joes put on their faux-finance cap during the Facebook IPO and hoped it would get them rich. Everyone uses Facebook therefore everyone wants to buy Facebook stock, the logic went. "

Who, in the blue f*ck, was actually thinking this????!?!?!?!?!?!?!?!?!?!?!??

Everyone I know, including me, and everywhere I read, said the same thing "eesh, stay away, this sucker's going down"
Anyone who didn't shouldn't be in charge of a monopoly board, let alone their own finances.
 
2012-11-07 03:05:46 PM  

The Dynamite Monkey: hp6sa: There has to be some serious hyperbole going on - 6,200 shares, even if the trade were executed at the peak - would have been purchased for $279K, and sold for no worse than $108,810.

Unless she asked for 6,200 now worthless call options, I don't know.

Margin call?


In order for that to be true, her "entire life savings" had to have been less than ~$170,190.
 
2012-11-07 03:20:11 PM  
I'm going to go out on a limb and guess that if her stock doubled, she wouldn't be crying tears for the people who missed out on the increase which she got. Conversely, fark her
 
2012-11-07 03:35:14 PM  
I'm new to this whole stock thing and even I would never complain about that...I mean, it seems like she MAY have a legitimate gripe regarding her brokerage not following her requests properly (I dunno...don't have the other side of the story) but come on...you never know what they're going to do, these stock thingies.

/Have sellable stock...never had this opportunity before...don't know what to do with it myself
 
2012-11-07 03:39:42 PM  
Morgan Stanley, she said, "informed their own privileged clients" that it was downgrading its outlook on the stock, just before the IPO, and then issued more shares while raising the price "just to suck more suckers into the stock," according to her FINRA complaint filed in July.

This is really the only part that matters. If they were pushing their top investors away and pulling in everyone else, there is a problem that should be addressed by a regulatory body or the courts.
 
2012-11-07 04:07:47 PM  

oh_please: Disclaimer: I don't know jack shiat about financial markets.

When Facebook went public, I honestly couldn't understand why it was valued so high, and nobody could explain it. Ads? Really? Nobody I've ever known has knowingly clicked an ad on Facebook, and that includes people who post pics of their kids all day, every day. Data? Maybe, but right now, what are they going to do with it except sell it for pennies?

Maybe you financial wizards can tell me why FB's valuation was so high in the first place?



Because of Google and Linked.

Back when google launched, people were like, "A search engine? ad revenue...from links?...WTF? I'm not putting my money into that. No one thought google was going to go to $700 a share. And this was right after the tech bubble had burst, so people were especially weary of another tech company. But then google went to $700 a share and people were kicking themselves.

Then linkedin went public. And people were kind of weary again. A social media site...that isn't facebook? Didn't myspace try this before an fail? $45 a share for linked in...umm..yeah pass....WTF doubled overnight. Dammit...I can't believe I missed the boat on this again.

So when it came for facebook...everyone was ready. If linked in is worth $45/share so is facebook and it'll got $200 share...But everyone had the same plan. Either buy and hold and watch as your $50 stock rises to $500 a share...or Buy at $50 a share and flip it at a $100 and double your money...no sweat.

The problem is that everyone was trying to do the same thing. Everyone's secret plan...wasn't a secret...it was the same plan everyone else was doing. On top of that: Facebook doesn't have anywhere to grow. They already had 1 billion users (or close to it when they went public). They were already operating around the world. Where is the expansion? where is the growth? What are they raising capital for(other than to cash out the VCs)? And now that they are a public company and can't fudge the numbers...we're finding out that they aren't as hugely profitably as you thought (they still make a lot of money..just not the money you as much as we thought).
 
2012-11-07 04:36:40 PM  
Give her some farmville items and call it a day.
 
2012-11-07 04:41:34 PM  
Why the hell would she put her life savings into a single company? That's pretty much the first rule of "Things Not To Do When Investing". Assuming Vanguard didn't make an error, I find that my sympathy for her is limited.

I'm in the "slow-and-steady" camp and stick to index mutual funds (total stock market index, international stock market index, and a bond fund). I considered switching to ETFs due to their slightly lower cost but the advantages of mutual funds (assured liquidity, all trades take place at the end-of-day NAV, can buy fractional shares, and ease of dollar-cost-averaging) in my situation outweigh a few bucks a year difference. I consider the intra-day trading of ETFs, particularly in retirement funds, to be way too volatile and prefer the relative slowness of mutual funds.

My wife is also in the slow-and-steady camp, but prefers to buy individual stocks that she does a lot of research on and then holds the shares for years. I don't have the time for the research, so I stick with the index funds (particularly in my IRA).
 
2012-11-07 05:16:26 PM  
As a mutual fund broker, I'm getting a kick...
 
2012-11-07 05:40:16 PM  
I just came here to post this:
LOL
 
2012-11-07 05:47:05 PM  
how could you not know that stock would attract a huge number of finance sharks looking for a bunch of guppies for a feeding frenzy?

if you bought facebook then you were raped by these dudes. and you deserve it for jumping into the thunderdome with them.
 
2012-11-08 02:17:02 AM  

Fish in a Barrel: Diversification.


Obviously she isn't doing her financial planning with the right guys

24.media.tumblr.com
 
2012-11-08 03:28:01 AM  

KFBR392: oh_please: Disclaimer: I don't know jack shiat about financial markets.

When Facebook went public, I honestly couldn't understand why it was valued so high, and nobody could explain it. Ads? Really? Nobody I've ever known has knowingly clicked an ad on Facebook, and that includes people who post pics of their kids all day, every day. Data? Maybe, but right now, what are they going to do with it except sell it for pennies?

Maybe you financial wizards can tell me why FB's valuation was so high in the first place?


Because of Google and Linked.

Back when google launched, people were like, "A search engine? ad revenue...from links?...WTF? I'm not putting my money into that. No one thought google was going to go to $700 a share. And this was right after the tech bubble had burst, so people were especially weary of another tech company. But then google went to $700 a share and people were kicking themselves.

Then linkedin went public. And people were kind of weary again. A social media site...that isn't facebook? Didn't myspace try this before an fail? $45 a share for linked in...umm..yeah pass....WTF doubled overnight. Dammit...I can't believe I missed the boat on this again.

So when it came for facebook...everyone was ready. If linked in is worth $45/share so is facebook and it'll got $200 share...But everyone had the same plan. Either buy and hold and watch as your $50 stock rises to $500 a share...or Buy at $50 a share and flip it at a $100 and double your money...no sweat.

The problem is that everyone was trying to do the same thing. Everyone's secret plan...wasn't a secret...it was the same plan everyone else was doing. On top of that: Facebook doesn't have anywhere to grow. They already had 1 billion users (or close to it when they went public). They were already operating around the world. Where is the expansion? where is the growth? What are they raising capital for(other than to cash out the VCs)? And now that they are a public company and can't fudge ...


http://www.reuters.com/article/2011/01/06/us-facebook-goldman-idUSTRE 7 0359V20110106

And if you didn't walk away laughing you're a goddamn moron.
 
2012-11-08 05:06:52 AM  
$1.9 mil claim for 6200 stocks? Sounds not right.

And on her broker - could someone explain - if a client cancels an unexecuted order for an instrument which is trading on the market and the broker fails to do it - this I can understand, but if this is an IPO - once the client passes a market order isn't he/she commited to buy anyways?
 
2012-11-08 05:52:22 AM  
Something tells me she doesent quite understand the meaning of the word entire. Also, she seem sto be really bad at math.

That said, these brokers do sometimes get pushy and loose with the facts, but "entire"? BS.

/ if you HAVE 1.9 million and you put the ENTIRE thing into anything, I just cant care too much about you.
 
2012-11-08 09:18:22 AM  

Bhruic: FTA: A lot of average joes put on their faux-finance cap during the Facebook IPO and hoped it would get them rich.

Here's a tip for idiot investors. Or just idiots. If you are doing something in which you need to hope to get rich, you are doing what's known as "gambling". And when you are doing that, you might get rich, but it's also possible that you might get less-rich. If you can't afford to become less-rich, you shouldn't be gambling.


Can't be emphasized enough. The stock market is always a gamble, even for the big boys - but, we've been pushing the "use the stock market to get rich quick" meme since the 80's, and there's always somebody willing to exploit that meme for profit.
 
Displayed 50 of 51 comments

First | « | 1 | 2 | » | Last | Show all

View Voting Results: Smartest and Funniest


This thread is archived, and closed to new comments.

Continue Farking
Submit a Link »
On Twitter





In Other Media


  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.

Report