Brokerages Stop Taking Facebook IPO Orders

Buying, selling frenzy expected tomorrow
By Rob Quinn,  Newser Staff
Posted May 17, 2012 3:00 AM CDT
Brokerages Stop Taking Facebook IPO Orders
Buy Facebook at the wrong time and you could lose you shirt, investment managers warn.   (AP Photo/Paul Sakuma, File)

(Newser) – Several brokerages have told clients that it's now too late to order Facebook shares ahead of the expected stampede when the stock goes public tomorrow. Morgan Stanley—one of the 33 underwriters of the huge IPO—is among those that have stopped accepting new orders, sources tell Reuters. Its client advisers had been told that the number of Facebook shares per client would be capped at 500, sparking a "mad scramble" among advisers who thought shares would only be offered to institutional investors, one adviser says.

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The newly expanded IPO is expected to raise as much as $16 billion for Facebook. At least eight self-help manuals have emerged to capitalize on the IPO frenzy, notes the Sydney Morning Herald. Most retail investors have only a small chance of getting hold of IPO shares, and wealth managers have been warning clients that "a lot of pain" could lie ahead for people who get carried away and buy Facebook shares at inflated prices after they go public. (Read more Facebook stories.)

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