How is Wall St Allowed To Get Away With It?

Todd of Texas wrote:

And all the analysts, investment advisors, and rating agencies have no obligation to the buyers to let them know the stock is overpriced?

That was quite a leap there.

But to answer your rather silly question anyway - some agencies are in the business of expressing an opinion about the value of a stock. When they do, it is just this, an opinion. Nothing more, nothing less.

So, it is quite impossible to "let them know the stock is overpriced".

Whatever a stock is trading at represents the combined wisdom of the folks actually doing the buying and the selling. That is, the opinions of folks putting their money where their mouth is. Almost by definition, there are always as many folks with real skin in the game that think the stock "should be" worth more than it is currently trading for as there are folks that think the stock "should be" worth less.

Are you looking for some Nanny to come in and tell them they are wrong and here is the real, true, correct valuation for this company?

HowHow wrote:

Analyst on CNBC said FB not worth more than $10 a share. That is one third of it's current valuation. Yet the investment banks were allowed to price it at $38 and cash in when it IPO'd on Friday during the brief run up. Today the free fall continues.

Why don't you simply short the stock?