The Bears have it.
Facebook Inc. (FB)’s 45 percent drop since its initial public offering generated returns of more than 500 percent for European investors that bought structured products benefiting from the stock’s decline.
A put warrant, a security for speculating on the future direction of a company’s share price, which predicted Facebook would be at $22 by March, cost 6 euro cents ($0.07) to buy in the week after Facebook went public with an initial price of $38. Today, with Facebook trading at $21.10, the warrant is worth 37 euro cents, according to data compiled by Bloomberg.
Follow the link for a somewhat murky explanation of the even murkier world of betting that stocks will go down.