From, “Facebook I.P.O. Raises Regulatory Concerns,” by
Evelyn M. Rusli and Michael J. De La Merced, 5/22/12, The New York Times:
In the weeks leading up to Facebook’s I.P.O., Morgan Stanley
took a frontal approach to the pricing process. When the firm considered
raising the offering price as high as $38 a share and increasing its size,
other bankers pushed back. They worried that the company’s growth prospects did
not support such lofty valuations.
Some bankers were also troubled by the huge demand from
individual investors, a relatively capricious
group. While Facebook allocated most of its shares to big, institutional
investors like mutual funds and hedge funds, it also gave a larger-than-usual
block, close to 25 percent, to ordinary investors.
Capricious: given to
sudden and unaccountable changes of mood or behavior; whimsical; fickle
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