Skip to comments.Facebook IPO trading glitch may cost Nasdaq over $100 mln
Posted on 05/22/2012 4:37:31 AM PDT by TigerLikesRooster
Facebook IPO trading glitch may cost Nasdaq over $100 mln
Washington, Mon, 21 May 2012 ANI
Washington, May 21 (ANI): A trading glitch at Nasdaq during last Friday's Initial Public Offering for Facebook may end up costing the American stock exchange nearly a 100 million dollars to compensate the losses, according to a report.
Fuming traders and investors have slammed Nasdaq with demands that the exchange make good on losses they say were incurred during the messy execution of the Facebook IPO.
Nasdaq systems essentially broke down and failed to execute buy and sell orders for the stock at various times during Friday's stock sale, according to people with first-hand knowledge of the matter.
According to Fox Business, these people said that the demands for money could total 100 million dollars or possibly more.
Nasdaq chief executive officer Bob Greifeld is, however, at least for now, taking the position that the exchange will not cover the losses, the report said.
According to the report, traders said that the losses they incurred last Friday because of the Nasdaq glitches have marred what should have been a huge victory for the exchange, snaring the coveted "listing" of Facebook's highly anticipated IPO.
Traders and investors said that orders for shares of Facebook went unfilled for hours, and cost them money due to the glitch in Nasdaq systems.
Shares of Facebook were priced at 38 dollars, quickly moved to around 42 dollars dollars, but ended the day about where they started at 38.23 dollars.
Meanwhile, Facebook has said that the company is upset with the Nasdaq's handling of the IPO. (ANI)
I noticed that they didn’t point out any evidence of glitches. Just stating that there were.
I just wish they would identify the guy who bought FB at $45!
The WSJ told of the trader who was saved by the glitch!
Will he have to pay Nasdaq?
Ok, I am going let my dumbness show and ask how FB makes money? Do they have advertising on it? Or do they sell your information?
A lot of people are asking how they intend to make money.
Apparently they’ve got some advertising, that nobody pays attention to.
The only real possibility is selling users private information.
Why isn’t the media and Congress screaming for Congressional hearings and a truckload of new regulations?
Wow... An enterprising person with a domain name and a sock puppet could really milk a process like this! :-)
Advertising. And frankly I don't even notice the ads on FB...that fact alone would make me hesitant to by stock in FB. Apparently advertisers are beginning to realize that most FB users don't notice the ads, and are beginning to pull their ads from Facebook....GM is one such case. The Facebook IPO is further proof that P.T. Barnum was right.
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