Citing sources close to the situation, The Wall Street Journal reported the exchange operator is going to compensate investors who partook in Facebook's IPO. The exchange's technical problems caused several problems with the offering.
The filing with the Securities and Exchange Commission may detail how the exchange intends to compensate investors, brokers and banks that were affected by the technical errors the New York-based exchange suffered May 18. Those close to the situation said the costs could be more than $100 million.
Trading Facebook's IPO was nothing short of disastrous, as the exchange initially had problems opening the issue for 30 minutes, then firms did not know their orders had been filled or canceled for several hours following the open. Some investors believed they had canceled their orders, only to learn they had purchased stock.Representatives from both Nasdaq and Facebook were not immediately available for comment for this story. Shares of Nasdaq gained 2.2% in Tuesday trading to $21.86, while Facebook shares continued their descent, falling 3.8% to close at $25.87. Interested in more on Facebook? See TheStreet Ratings report card for this stock. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV