Report: Nasdaq To File Plan With SEC Wednesday On Compensation After Facebook IPO Glitch
The embattled Nasdaq stock exchange will make its initial filing with the Securities and Exchange Commission Wednesday regarding steps it will take to compensate investors who lost money on Facebook’s initial public offering due to technical issues, according to reports.
The embattled Nasdaq stock exchange will make its initial filing with the Securities and Exchange Commission Wednesday regarding steps it will take to compensate investors who lost money on Facebook’s initial public offering due to technical issues, according to reports.
The Wall Street Journal reported that Wednesday’s filing will contain details on how Nasdaq intends to make up for the more than $100 million in losses suffered by banks and traders.
Facebook’s IPO launched Friday, May 18, and Nasdaq announced on the next business day, Monday, May 21, that it would set aside at least $13 million to compensate the affected entities, with the Financial Industry Regulatory Authority charged with overseeing the process of distributing the funds.
The $13 million figure cited by Nasdaq included $10.7
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