NASDAQ to compensate investors affected by Facebook’s IPO
New York: The Securities and Exchange Commission has approved a plan by the NASDAQ stock exchange to pay 62 million dollars as compensation to investment firms that lost money because of technical problems during Facebook's Initial Public Offering (IPO) in 2012.
The NASDAQ had said in June that it would pay 40 million dollars, but later increased the amount to 62 million dollars.
Facebook went public May 18 amid great fanfare, but computer glitches at the Nasdaq delayed the start of trading and threw the debut into chaos, the New York Daily News reports.
According to the paper, the social networking firm’s stock originally priced at 38 dollars and closed that first day at 38.23 dollars after going as high as 45 dollars.
Nasdaq has said that it was embarrassed by the glitches, but that they didn't contribute to the underwhelming returns.