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Wednesday, May 23, 2012

Facebook plunge 'day trader's paradise'

NEW YORK (CNNMoney) -- Facebook's stock has plunged nearly 18% from its IPO price, but it's not simply a case of investors disliking the company.

Facebook has attracted a rash of stock flippers -- investors who quickly buy and sell a stock in the hopes of making a quick profit.

"It's a day trader's paradise right now. There's high volatility and high volume," said Douglas DePietro, managing director for sales trading and trading execution at Evercore Partners.

While volatile, frenetic trading is not unusual in the first few days after a large IPO, in the case of Facebook both the overall trading volume and Nasdaq's problems executing trades amplified the moves. Read More