| Felix Salmon
Morgan Stanley’s $2.4 billion Facebook short By Felix Salmon MAY 21, 2012 Matt Levine had a very wonky post on Friday afternoon about the dynamics of the Facebook IPO in general and of the very misunderstood greenshoe option in particular. Now that we’ve all had a nice relaxing weekend, it’s maybe worth revisiting that greenshoe, because it’s actually possible, given Facebook’s tumbling share price today, that Morgan Stanley will make a substantial amount of money on it. First, it’s worth explaining how the greenshoe option is meant to work. In the IPO, the underwriting banks — there were lots of … Read more