Facebook IPO – Time to Consider Sarbanes-Oxley Implications

The debate continues on the “fairness” of information dissemination with respect to the Facebook IPO.

At this writing, Facebook is trading at approximately $28, down about 28% from its original $38 issue price.

Obviously, investors have a lot of questions.  See this article ( http://www.valuewalk.com/2012/05/facebook-inc-fb-ipo-disaster-a-reason-to-revisit-sarbanes-oxley/ ) for a call for reconsideration of Sarbanes-Oxley because of perceived problems with the Facebook IPO.

Of course, at this time, regulators are examining the IPO and determining the associated regulatory implications ( http://www.foxbusiness.com/news/2012/05/22/sec-finra-to-review-facebook-issues-nasdaq-sued/ ).

Morgan Stanley, the lead underwriter for the IPO, continues to defend its role in the IPO ( http://www.marketwatch.com/story/morgan-stanley-ceo-defends-facebook-ipo-conduct-2012-05-30 ).

Certainly, the regulator’s investigation of the Facebook transaction will provide the public with a “behind the scenes” view of insider conduct regarding a very public IPO.

About docjonz

I am an Associate Professor of accounting at Hofstra University in Hempstead, NY. Additionally, I have more than 30 years of professional accounting experience in various capacities including auditing, accounting standard setting and corporate accounting policy.
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