11-year-old Sam Lesser learned a hard lesson when he broke open his piggy bank to buy 300 shares of Facebook stock for $10,000 last week. In the blink of an eye, the fifth-grader lost 25% of his investment ($2,500) along with millions of other small investors who hoped to make a fast buck.
The small investors aren’t alone; 28-year-old Facebook CEO Mark Zuckerberg is losing, too — at the rate of $15 million per hour. Facebook stock has nosedived to under $27 today from its initial price of $38 on May 18. Investors have filed a lawsuit in Manhattan Federal court alleging insider the large banks that managed Facebook’s IPO launch.
Sam’s mother filed a dispute at their local Fidelity Investments to get Sam’s money back.
“We’ve spoken with three senior traders and nobody seems to have any answers at Fidelity,” said Lesser’s mom. We feel misguided and misled,” she said, adding that some of her son’s potential profits were going to go to Lance Armstrong’s LiveStrong charity.
“They are holding my money hostage,” said Sam, who bought shares of Apple stock when he was 5. He declined to say how much that stock is worth today.