ipo

Nasdaq would have delayed Facebook's IPO to address technical problems had it known the extent they would affect its trading system, a senior official for the exchange told customers today.

Eric Noll, Nasdaq's head of transaction services, said the exchange "by no means would have gone forward" with the much-anticipated offering had it known problems would disrupt a "normal trading day," according to an account of the conference call reported by the Wall Street Journal.

"In retrospect, it was incorrect," Noll said of the decision to proceed with the blockbuster offering after … Read more

Facebook itself may be responsible for investors' tepid response to the social network's stock, which has been tanking since it went public Friday.

Initially, it looks like Morgan Stanley, the lead underwriter on the massive offering, was to blame for allegedly telling major clients it had reduced its revenue forecast for the company, scaring off many big investors in the days leading up to the IPO. But no one knew why Morgan Stanley -- as well as JPMorgan Chase and Goldman Sachs, which also served as major underwriters for the deal -- would revise their estimates so close to … Read more

Facebook's uber-rich insiders aren't likely to win much sympathy. But the company's thud of an IPO is likely to shave hundreds of millions in profits for a select bunch who just a few days ago counted on a magnificent payday.

As a result of the swoon in Facebook's stock, early investor Sean Parker is likely to lose out on $380 million in cash he had expected; Facebook co-founder Dustin Moskowitz: $285 million.

Let's hope they haven't spent it already.

At issue is what's called the "over allotment" of shares -- known … Read more

A Maryland investor sued the Nasdaq stock exchange over its mishandling of the Facebook IPO on May 18, claiming that investors lost money because the exchange failed to process buy, sell and cancellation orders in a timely fashion.

The investor, Phillip Goldberg, filed his complaint in Manhattan federal court and is seeking class-action status, Bloomberg reported.

Goldberg's complaint alleges that Nasdaq was negligent because it delayed trades and failed to cancel customer orders as requested. The exchange has apparently blamed faulty software. Nasdaq also faces an SEC review over trading in Facebook shares.

Even on Internet time, that's pretty fast.

Truly, the whine-fest accompanying Facebook's first few steps as a public company has been remarkable, what with the screeching about a botched IPO now as loud as the hype that surrounded the run-up leading to last Friday's big event. It's also fed a growing backlash that has left investors and analysts howling about the $105 billion market capitalization that Wall Street gave the company.

And though this novella is far from played out, you know the rest of the story: as … Read more

The chairman of the Financial Industry Regulatory Authority told Reuters today that regulators plan to review the allegations that Facebook's own underwriter shared negative news with big investors in the run-up to the Facebook IPO last week. The SEC is also reportedly going to investigate.

News of a possible probe follows a Reuters report last night that said Morgan Stanley and Goldman Sachs each told major clients that it was reducing its revenue forecast for Facebook.

"The allegations, if true, are a matter of regulatory concern" to the Financial Industry Regulatory Authority and to the SEC, FINRA … Read more

Facebook's stock hit a new low as reality sinks in for the social-networking titan.

Shares opened down 6.6 percent to $31.78 today. It then slipped further to $31.59.

After going public in one of the largest initial public offerings ever, Facebook's stock has seen nothing but trouble. After facing glitches in its first day of trading that halted any potential momentum it had going, shares fell 11 percent on its second day of trading yesterday.

The sentiment this morning wasn't good; shares had already indicated lower before the market opened.

Despite Facebook's massive … Read more

While Facebook's underwriters have been credited with keeping the stock afloat during its first day of trading, a new report suggests that the action of one the company's bankers may have helped sink the social network's much-anticipated offering well before its first trade.

In the days before Facebook's IPO, the lead underwriter for the deal told major clients it was reducing its revenue forecast for the company, according to a Reuters report.

Morgan Stanley's revised forecast so close to the monster IPO came as a huge shock to some, likely contributing to the lackluster performance … Read more

On "Meet the Press" this weekend, Jim Cramer called Facebook's initial public offering a total fiasco and "one of the worst handled things I've ever seen." That's because the stock climbed only 23 cents, or just over 0.6 percent. Many said Facebook fizzled.

A surging stock on the first day of trading is certainly a success for those insiders with relationships to the investment bankers who can make an instant bundle. And the investment banker also does better under that scenario.

But my definition of a successful launch of a new publicly … Read more