Facebook’s shares have slumped since the company’s debut on the public markets last Friday, but a bad start to an initial public offering isn’t necessarily a bad thing.
CNBC presented data Tuesday from Jay Ritter, a finance professor at the University of Florida and an expert on public stock offerings.
Ritter’s data show that, although only one in four new public companies trade below their IPO price on the first day of trading, larger companies (like Facebook) tend to outperform the overall market over time.
