Feeds

back to article NASDAQ offers $40m to Facebook IPOcalypse investors

NASDAQ has offered Facebook investors a $40m apology pot for technical glitches that messed up the public sale of the social network's shares - much to the annoyance of rival exchanges. The stock market giant needs a thumbs up from regulators before it can hand over $26m (£16.7m) in trading discounts and $13.7m (£8.8m) in cash …

COMMENTS

This topic is closed for new posts.
Gold badge
Trollface

" ...had orders to sell at $42 that didn't go through..."

This was the first day, no? Well if you didn't want them; then you shouldn't have bought them. Tough ****. Case closed. N E X T ! ! !

4
2
Silver badge

I imagine many of those trying to sell at 42

were small fish in the Facebook development team who were trying to cash out on their deferred earnings. So they didn't exactly buy them in the way you are implying. I'll grant them some leeway and say the exchange owes them.

If we're talking about Morgan Stanley, any of the other IPO partners, or speculators who got special deals to assist with the IPO, I'm with you.

2
0
Bronze badge
Holmes

Quick gain

Even if you hate cucumbers, you may well choose to buy them first thing in the morning at 38p, expecting the price to hit 42p later in the day because the forecast says "hot and humid" from which you expect a lot of demand because everyone is wanting to make cucumber salad.

Turns out though the forecast was off.

1
0
Bronze badge
FAIL

Re: I imagine many of those trying to sell at 42

Share price didn't even hit 42, so they would have been out of luck even if the order had gone through correctly.

1
0
Anonymous Coward

Gamble lose, get your money back...

Bad investors getting their money back? Anyone else thinks this is crazy?

Investors should have seen that facebook didn't make much money, many here on el Reg predicted it was overvalued. General Motors pulled their advertising off FB just days before the IPO which should have been a big clue to investors that it would not make a sound return.

But hey, gamble, lose, cry, then get your money back... I wonder if that would work on a slot machine or the lottery?

2
1
Bronze badge
FAIL

Re: Gamble lose, get your money back...

Comprehension is hard, apparently.

This is not a compensation for gambling losses, this is a compensation for the NASDAQ systems croaking, with the result that trades didn't go through in a timely manner; a matter that NASDAQ may well be held accountable for, unlike the free fall of Farcebook's share price.

1
1

Re: Gamble lose, get your money back...

It was not a problem in the matcher, it was an outside system. Something to do with auction phase or so. It is handled by another system, which failed.

0
0
Devil

Coupons, not cash

Give a replacement, not a refund is the trade dogma.

How much are a million likes on Facebook worth?

1
0
Facepalm

$40m apology

Glad I'm not the programmer responsible for that bug. Docking his/her pay at say $50K/year (assuming they make that much) would take 800 years to pay off.

0
0
Silver badge

If I were caught up in this fiasco

I don't think I'd take the early $40m apology. I expect once the lawyers are fully involved in this the amounts will go much higher.

Of course, it is much better to not be caught up in this fiasco at all.

0
0
This topic is closed for new posts.