Did Morgan Stanley's CEO Gorman Imply Morgan Stanley Is Still Supporting Facebook?
In an interview on CNBC, Morgan Stanley's (NYSE: MS) CEO James Gorman implied that his company's work might not yet be complete on Facebook's (NASDAQ: FB) IPO. It may be likely that this implication was referring to Morgan Stanley's support of Facebook shares.
Morgan Stanley is Facebook's lead underwriter, with part of its role being to maintain stability in Facebook's early trading. Gorman says that Morgan Stanley will disclose more information about its role in due time.
Investors might wonder if Facebook's trading activity since its IPO would have looked different without Morgan Stanley's potential intervention. Facebook is trading near 22% lower than its $38 IPO price, but would it be trading even lower without the help of Morgan Stanley?
Facebook stock closed 5% higher today after a late afternoon run-up.
Disclosure: I do not own shares of Morgan Stanley of Facebook.
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