Facebook IPO 'unliked'

PUBLISHED : Friday, 25 May, 2012, 12:00am
UPDATED : Friday, 25 May, 2012, 12:00am

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NEW YORK - A lot of people seem to be unfriending Facebook lately. Many of them lost a lot of money on the company's IPO. An IPO (initial public offering) is when a company first offers shares for sale to the public. Many people eagerly anticipated Facebook's IPO, but technical problems at the stock exchange meant trading started half an hour late.

But what really angered many people was that they felt they had been lied to about how good Facebook is. Some shareholders have opened a court case against Facebook and Morgan Stanley, one of the banks involved in the IPO. They believe that analysts at Morgan Stanley didn't warn all clients about the stock. Facebook's shares have lost a lot of value since the IPO.