Monday, March 25, 2013

Technical Issues with Facebook IPO to be Corrected.

This story is featured on Megasafe Money today but it also had to be brought up here as well.  The initial IPO offering for Facebook was highly anticipated and from the start there seemed to be problems. 

Regulators today approved of a plan to compensate market makers who lost money in the botched Facebook Inc. (FB) IPO in May on the Nasdaq exchange.

Nasdaq, a unit of Nasdaq OMX Group Inc. (NDAQ), has offered a revised $62 million settlement to those brokerages that lost money.

The decision from the U.S. Securities and Exchange Commission was in response to a series of high-profile glitches last year that shook the market, including the handling of Facebook's long-anticipated initial public offering. 

This is welcome news to initial investors, however it has caused share price to dip by 2%. It will be interesting to follow the ramifications of this decision by the SEC today.