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
-
How to find the best luxury hotel dealsKnowing how to find the best luxury hotel deals can help holidaymakers enjoy high-end experiences without the sky-high costs. We reveal how to bag the best value for less.
-
Frozen thresholds could push ‘tax freedom day’ to latest date this centuryTax freedom day is the point in the year you stop earning for the taxman and start earning for yourself. A rising tax burden could push it to 12 June this year – the latest date since 1982.
