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Description:  Investors in once-hot social media stocks such as Facebook, Zynga and Groupon have gotten some painful lessons on the effects of supply and demand, which analysts say may hurt other Web firms contemplating an initial public offering.

Source: Marketwatch.com

Date: Aug 17, 2012

Link:  http://www.marketwatch.com/story/facebook-zynga-and-groupon-unlock-pain-2012-08-17

Questions for Discussions:

  • What does the report say about the effect on investor psychology? Do you agree?
  • Do you agree, as suggested, lock-up rules for selling should be changed?

 

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