Facebook IPO: 'FB' Stock Closes Close to IPO Price But Still Biggest U.S. Tech IPO


While the IPO will make a number of billionaires out of early Facebook employees and investors, Facebook's lead underwriter, the investment bank Morgan Stanley, will also come out a winner by the fees it will earn. The investment bank determined who got shares of the company before shares are sold to the larger public on Friday.

Krapfel said the media hype and investor buildup are to be expected, despite Facebook's investment risks.

"It's the most hotly anticipated IPO of all time," Krapfel said. "Most of the U.S. population that uses the internet uses Facebook so there's no surprise there would be a lot of interest in the IPO. Certainly with this much hype, there's a lot of demand from investors."

A trend of other high growth tech offerings show that "the more the stock goes up in the first day, the more it declines in the ensuing weeks and months," he said.

ABC News' Lauren Pearle and Zunaira Zaki contributed to this report.

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