This was absolutely no surprise – traders at home are discussing and constantly pointing out the scam that is the Facebook IPO. Watch as a trader explains the blatant market manipulation to guarantee that Facebook will not go under.
The scam is this: create a massive “bid” to uphold the price – this allows other traders to feel “comfortable” and buy above a certain price that never seems to break, in this case, the IPO price of $38.00 on Facebook. A bid is basically an offer to buy a stock, and can be entered like any other order and is displayed publicly for market participants to see. Most bid lots and ask lots (ask lots are just offers to sell a certain amount of stock) at a certain price are generally broken down into several hundred shares, with supply and demand driving the price up or down depending on lot size – hence, you may see the price of Facebook at $38.04 on your screen because the market maker is determining the price based on bid and ask lots – there may be a bid lot of 400 shares at $38.02 and an ask lot of 600 shares at $38.06, driving the market maker to print the official price at $38.04. However, if the bid lot is 23 million shares at $38.02 or $38.01, people are unlikely going to sell into that and will buy. However, just in case a bunch of people panic and sell, the computer programs are so fast they can minimize a lot of damage. The idea is to win no matter what.
Outside of a failed bid upholding the price (which didn’t happen), you then use your high frequency trading computer programs to trade between each other at unmatched speed shares of Facebook stock, literally making a few dollars on each trade by making the price of shares swing back and forth between a small range, sucking other traders in and making money off them.
The banksters need money, badly. Expect Facebook to eat dust and sell off harshly simply for the reason that the Rothshills need money because they’re running out. However, what will be even bigger news next week is our favorite current Rothshill, JP Morgan Chase and its current Facebook status, so to speak – “Getting pwned in the face by people demanding truth – #muppets”.






