Are Facebook’s retail investors lambs at a slaughter?
If lots of individual, retail investors do buy into Facebook and they make money at it, that could lead to individual retail investors coming back into the market. Something that individuals smartly have avoided for the last several years. Retail buyers making money would be great for the market..
Facebook will be a highly liquid name. Perfect for High Frequency/Algorithmic Traders (HFTA). If Facebook is a huge draw for individual retail investors, HFTA Traders will see them as lambs waiting to be slaughtered. They will feast on the unwashed, unsophisticated mass of retail buyers dashing into Facebook. THey will pray that the stock skyrockets and stories of individuals making out like bandits are spread throughout the media. They will attack this stock like a pack of wolves.
I kinda agree with Cuban. This is going to be an interesting stock to watch, for sure!
