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 …
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.
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.
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?
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.
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