Nasdaq OMX Group has decided to return 40 million dollars to those brokers whose orders were mishandled in Facebook's initial public offering (IPO) due to technical errors.
Specifically, the US stock exchange operator said it will pay $13.7m in cash and the remaining amount would be credited via lower trading fees for those brokers that were affected. A series of glitches when Facebook went public delayed the start of trade by half an hour and left many trades unexecuted.
The compensation plan must be approved by the Securities and Exchange Commission (SEC) and, if passed, Nasdaq expects all benefits to be paid out within six months.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Nasdaq traded up 1.72% yesterday to close at $22.24. Facebook -which has fallen 29.4% since its debut at $38- rebounded 3.64% yesterday to close at $26.81.
JM
-
Parental contributions to kids' university living costs could reach £14,000 a yearParents helping kids with university living costs face contributions of up to £14,000 per year, according to a report from HEPI and TechnologyOne.
-
Rightmove: property asking prices hit record highNews Rising demand for top of the ladder home is boosting asking prices, Rightmove research shows. Is now a good time to sell a property?
