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Nasdaq Fined $10M Over Facebook IPO Failures
twoheadedboy writes "Nasdaq has been fined $10 million by the U.S. Securities and Exchange Commission over 'poor systems and decision-making' during the Facebook initial public offering. When Facebook went public on 18 May 2012, it was hoping for a major success, but technical glitches and poor decision making at Nasdaq caused real problems. The SEC said 'a design limitation' in the system to match IPO buy and sell orders was at the root of the disruption, thought to have cost investors $500 million. Orders failed to register properly, leaving banks like Citigroup and UBS in the lurch and making additional, unnecessary bids. They may still win money back from Nasdaq if legal challenges go their way."
The SEC said 'a design limitation' in the system to match IPO buy and sell orders was at the root of the disruption, thought to have cost investors $500 million.
Nasdaq has been fined $10 million by the U.S. Securities and Exchange Commission over 'poor systems and decision-making' during the Facebook initial public offering.
And people wonder why the average person hates the very idea of the stock market.
Funny how the government can come down on a company when its the insiders that get screwed - Come n, joe q investor cant get hot IPOs like Facebook, its either employees and founders (which is OK) or big mega banks that set the deals up that end up getting the IPO shares and selling at the spiked post IPO price.
The delays caused the investors to lose less money than they would have lost otherwise. Had things been happening at maximum speed people would have come to realize even sooner that facebook was wildly overvalued and the market correction would have driven the price even lower. Instead it only lost around half of its value on opening day.
Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
A 10 million fine on the scale of these companies is NOTHING... the paperwork to pay it costs as much as the fine...
Once they get to this 'too big to fail' state... any fine under a billion dollars is nothing. You're just wasting everyones time.
Either correct the fine so that the company will notice and will change.. Or just ignore it.
This half assed way of doing things we use right now is pointless.
stop it.
The question is how do you accurately value a company with an unproven business model and no clear profit lines? Also considering that this company has had a whole legion of predecessors who had the same idea, but failed for one reason or another to become profitable or sustainable.
Because when you average it all out, no one really lost anything.
Where tangible things of real value are commodities, and not just hype.
It's a fucking music video you idiot.
We overvalued FB by some margin and then some, didn't realize we're essentially scryers looking into our crystal balls that display models that we built, for people like us, who believe these schemes to be true (and hence make them true, as long as petty things like market or reality don't butt in), we lost money because we're too dumb to realize our models have nothing to do with reality and once they hit reality they crumble.
But it's all Nasdaq's fault for doing ... uh ... what exactly? Not allowing us to blow away our money fast enough? Because that's essentially the "mistake" Nasdaq made. But hey, maybe that's required for the scheme to work, because the only thing that would've kept FB share values up was money artificially pumped into it to inflate it.
So yes, Nasdaq is to blame. They didn't let us play the market like we usually do, sue their pants off 'em!
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Don't go public to begin with. Screw the idea of shareholders. Once you go down that road, you no longer "own" your company. You operate at the largesse of the shareholders, who are only interested in money. Money, in the long run, is the poorest of motivators for success.
Once they got in and started floating that insane value for Facebook pre IPO, it should've been obvious to investors that the fix was in. If you see GS jumping in on anything, think of it as a neon "Warning: anal rape ahead" sign. Unless, you're privy to the innards of the deal of course...
I swear to God...I swear to God! That is NOT how you treat your human!
What I don't understand, is why would trading be different for Facebook than every other stock on the exchange? Don't they just add the symbol to the database and then it trades like everything else. The fact the only Facebook was glitched seems to imply either a very sloppy system for initializing the software with a new symbol or there was some sort of malfeasance being employed with just this stock.
So about that what nasdaq trades in the smallest amount in which time can be measured...?
A good swift kick in the Nadsaq
Why is it that whenever people talk about how this-or-that stock market action has "cost investors millions"? It's not like the money was lit on fire. It either never existed in the first place, or somebody won big off of somebody else's poor decisions. Isn't stock trading a zero-sum game by definition?
---- I'll take you in a Hunt deathmatch any day.
I've never understood the stock market and never will. It feels completely fake to me, like a real-money MMO. It's like a rigged game where most people get shit on and the elites get all the loot. Let's all pretend we're "buying" a part of a company! Maybe it was a good idea at one point, but it's just a big joke now.
You can dance if you want to.