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Facebook shares dip below $30 in 'worst performing IPO in decade' | Facebook shares have dropped below the 30 dollar mark, in what has been dubbed as the worst-performing Initial Public Offering of any
major floatation in the last decade. After placing at 38 dollars, Facebook's shares
briefly peaked at 45 dollars before sinking back to 38.25 dollars on their first
day of trading. They have fallen every day since then, and today plummeted nearly
ten percent to a low of 28.84 dollars at the close in New York , The Telegraph
reports. According to the report, most of the brokers are expected to cut their
losses now that Facebook shares have passed the important psychological thresholds
of 30 dollars a share and a 20 percent drop in value. "When something is this
broken this quickly, they sell and move on," the paper quoted Sam Hamadeh, managing
director of US research firm, PrivCo, as saying. "Historically, initial public
offerings that trade down this quickly don't ever recover. Brokers have lost quite
a bit of money and many will have their own rules about dropping out when it passes
that [$30] barrier," Hamadeh added. Meanwhile, Facebook and its Wall Street advisors
are already being sued by investors who lost out in the 16 billion dollars IPO
amid claims that they were misled about the social network's business prospects.
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