Shares of Facebook have been trading below their listing price amid growth concerns Morgan Stanley has been fined $5m (£3m) by the top securities regulator of Massachusetts for improperly influencing Facebook's share sale.According to the regulator, Morgan Stanley did not tell all investors that the social networking site's revenues may be lower than it had forecast.
Morgan Stanley did not confirm or deny the allegations by the regulator.
Facebook was criticised for the way it handled the initial public offering after its shares dropped in value.
In his order, William Galvin, the Secretary of the Commonwealth of Massachusetts, said that a "senior investment banker" from Morgan Stanley helped Facebook disclose the revised numbers only to key investors.
He added that the bank helped Facebook give out this information "without creating the appearance of not providing the underlying trend information to all investors".
