Google+

Harsh Criticism For Handing Of Facebook IPO Glitch

Technological glitches that helped taint Facebook’s $16 billion initial public offering last month have some investors miffed at Nasdaq, and some are arguing that the U.S.-based stock exchange isn’t doing enough to soothe the hard feelings or ease the concerns of jilted investors.

In a June 1 article, Reuters reporter John McCrank wrote “the exchange has done little to conciliate market making clients – a number of which lost tens of millions of dollars each due to the trading problems” that occurred during the social network’s IPO on May 18. “There has been no outright apology. And as angry as some customers may be, experts say they have little alternative but to keep trading on the exchange.”

According to McCrank, the stock market announced that they would be establishing a pool of nearly $14 million in order to help offset losses, and conducted a “member’s-only” conference call with one of their executive vice presidents. One investor, Mark Turner, the head of trading at New York-based Instinet, said that communication with Nasdaq officials both now and on the day of the IPO has been “minimal,” and four of the market’s top investors, including UBS, Citigroup, Knight Capital, and Citadel Securities, lost upwards of $115 million combined, Reuters said.

Nasdaq OMX President Robert Greifeld, who reportedly hosted an event at a California technology conference earlier this week, told reporters a few days after the IPO that the stock exchange has “humbly embarrassed” over the trading glitch. However, McCrank said, “he stopped short of a public apology.”

Facebook, which opened their first day of trading valued at $38 dollars, though as RedOrbit’s own Michael Harper reported on May 18, trading opened late following a 30 minute delay blamed on a rush of initial investors and the volume of IPO shares. By the end of the day, shares had fallen to $38.23, and as of 1:54pm EDT on Friday, June 1, that price had plummeted to just $27.66 per share.

For all the backlash over Facebook’s IPO, though, investors had plenty of criticism for Nasdaq and others as well.

“They have failed in executing a comprehensive or cohesive communications strategy,” Michael Robinson, a former U.S. Securities and Exchange Commission (SEC) public affairs and policy chief, a former media relations employee with Nasdaq, and an executive vice president at Levick Strategic Communications, told Reuters. “Here we are a couple of weeks later and I’m still not entirely sure what it is they said went wrong.”

“By now, it’s well-known that the Facebook IPO was a mortifying botch job, with the stock price set too high, too many shares offered, and a bunch of bungled trades right out of the gate,” U.S. News Chief Business Correspondent Rick Newman said. “The trading glitches that marred the opening day of trading on the NASDAQ weren’t Facebook’s fault, they were NASDAQ’s. The decision to sell too many shares, at a price higher than the market could bear, falls at the feet of Morgan Stanley, the lead underwriter.”

“There was apparently pressure from many of Facebook’s biggest early investors — otherwise known as owners — to increase the size of the float, so more of them could cash out and redeem their investments,” he added. “Now that the air has come out of the bubble, Facebook shareholders are suddenly worried that the social-media upstart might not be quite as invincible as they initially hoped.”

Source: RedOrbit

Entertainment

For movies opening September 30, 2016

  OPENING THIS WEEK Kam's Kapsules Weekly Previews That Make Choosing a Film Fun by Kam Williams For movies opening September 30, 2016 BIG BUDGET FILMS   Deepwater Horizon (PG-13 for intense action sequences, disturbing images and brief profanity) Disaster flick recreating the real-life events surrounding the 2010 explosion of the offshore oil rig in the Gulf of Mexico which claimed the lives of 11 crewmen and led to the worst … [Read More its Good for You.....]

Books

Richards Rocks!

  Sandra L. Richards The “Rice & Rocks” Interview with Kam Williams Richards Rocks! The American-born daughter of Jamaican immigrant parents, Sandra L. Richards is the author of “Rice & Rocks.” She hopes that her debut picture book will serve as an educational resource for families seeking to teach their children the value of their heritage and the importance of cultural diversity. Sandra completed both her undergraduate and … [Read More its Good for You...]

Art

More Than a Score

  ACRONYM TO FOLLOW by Peter Brav   Finally Our Day has come There’s a Day for everything For doughnuts, siblings, eight track tapes Grilled cheese, daughters and sons to work Encouragement, Alzheimer’s Coffee, math, chewing gum Blasphemy, yo-yos And now finally One for us Truly a Day to celebrate National Don’t Shoot An Unarmed Brother Doctor King Not Seeing Progress George Orwell Laughing It Is So About the … [Read More its Good For You...]

Real Estate

New Home Sales Jump in April

  New Home Sales Jump in April By Burt Carey Sales of new homes hit their highest rate since 2008 in April, according to the Commerce Department’s U.S. Census Bureau. April sales increased 16.6 percent over March figures, which correlates to a seasonally adjusted rate of 619,000 home sales projected for the year. The median price of those new homes was $321,000, the highest median price ever recorded. That’s up 9.7 percent … [Read More its Good for You.....]

Lifestyle

Richards Rocks!

  Sandra L. Richards The “Rice & Rocks” Interview with Kam Williams Richards Rocks! The American-born daughter of Jamaican immigrant parents, Sandra L. Richards is the author of “Rice & Rocks.” She hopes that her debut picture book will serve as an educational resource for families seeking to teach their children the value of their heritage and the importance of cultural diversity. Sandra completed both her undergraduate and … [Read More its Good for You...]

Outdoors

Apex Gear ACCU•STRIKE XS Series Bow Sights

  Apex Gear ACCU•STRIKE XS Series Bow Sights By Brad Fenson As an avid bowhunter, I’m always looking for a sight to not only help me acquire a target accurately and quickly but provide adjustability while being lightweight. It might be a lot to ask for but with a wide array of hunting situations, you have to be selective in your equipment to ensure you are always successful in the long run. The Apex Gear ACCU•STRIKE™ XS was … [Read More its Good for You...]

Sports

There Are Superheroes Among Us

  There Are Superheroes Among Us by Amy Lignor   This story truly proves that a superhero does not require a cape, tights, or the ability to fly. In a world where all headlines seem to be centered around who shot who, who is being put upon, who’s “getting away with it” – all the way to who is getting divorced and who may or may not be kneeling at NFL games – negative stories seem to be the only ones covered anymore by the media. … [Read More its Good for You...]

Business

Scholastic Announces Sales of More Than 3.3 Million Copies of Harry Potter and the Cursed Child

  Scholastic Announces Sales of More Than 3.3 Million Copies of Harry Potter and the Cursed Child Parts One and Two New York, NY (August 10, 2016) — Harry Potter and the Cursed Child Parts One and Two script book, the eighth Harry Potter story by J.K. Rowling, John Tiffany, and Jack Thorne, published in the U.S. and Canada by Scholastic has sold more than 3.3 million copies in North America to date.Scholastic announced a first printing … [Read More its Good for You...]

Travel

Vacation Time Has Turned “Spooky”

  Vacation Time Has Turned “Spooky” by Amy Lignor   Myths and legends, both spooky and surreal, are becoming the subject of many books and newspaper articles lately. And the location of many, oddly enough, happen to be in the Southwest. It used to be that a nice white sandy beach was the one place we yearned to go on vacation to get away from it all. Now, however, people are searching for places to travel where legends still exist, and … [Read More its Good for You...]

Green Living

Controlling a Species: Humans Being Humane

  Controlling a Species: Humans Being Humane by Amy Lignor   Humane. There is a reason why this word and human are basically spelled the same. What needs to happen, however, is for them to mean the same. There are societies out there that talk about just that. From clubs to groups to volunteer organizations that protect all varieties of our animal friends, “humane” is one act that they wish would be considered in any and all … [Read More its Good for You...]