NEW YORK ( TheStreet) -- The Securities and Exchange Commission is screwing you and, for all intents and purposes, nobody gives a damn.
Twitter's offer price locked in at $26 per share. The stock opened and immediately traded between $45 and $46. The media couldn't help but tell you -- with feeling that smacks of a new flavor of irrational exuberance -- that a move from $26 to $45 means TWTR popped 73% in its NYSE debut.
Moments into trading that so-called 73% gain turned into more than 80% as TWTR rose above $47. It eventually, albeit briefly, topped $50 per share.Just another IPO that showcases the wholesale shafting the SEC, alongside a more-than-compliant media, continues to deliver to a vast majority of investors. Those of you who were not in on the founding of Twitter, did not take a job at the social media outpost, or did not end up becoming a big banker, or outrageously wealthy investor. I can no longer own individual stocks due to my editorial position with TheStreet, however, I'm still livid. Livid because we make stars out of Dick Costolo and Jack Dorsey. We sensationalize and gawk over their company's IPO, yet we ignore the injustice an asleep-at-the-wheel SEC willfully maintains. Back in the day -- the good old days of 1999 to 2000-ish -- I had my E*TRADE (EFTC) account. In this video, I explain how my experience trading the Internet bubble's high-fliers -- FDRY, IWOV, ATHM and Extreme Networks (EXTR) -- went down. I don't remember the particulars (in disgust, I shredded the statements long ago), but all I know is, when my attempts to get shares at the offer were rejected, I chased these names at the open or shortly thereafter, timed it wrong and lost money more often than I made it. Lesson learned, but nothing has changed. The SEC rips you off here because they effectively bar you from participating -- even having a realistic chance at participating -- in the process that makes people such as Dorsey, Costolo and the big banks filthy rich over and over and over again. Where is it written that these guys deserve an inside track to a turnkey system that prints money and deposits it in their bank accounts? Sure they're founders, they're at the helm, but enough is enough. If getting completely shut out of the IPO process isn't a rip off, I don't know what is. The media deserves as much, if not more, criticism. Most of the media provides you with vile disservice.