Investors sue Nasdaq and Facebook over IPO(reuters.com)

2 pointsby anigbrowl14 yıl önce1 comments

Investors sue Nasdaq and Facebook over IPO

http://www.reuters.com/article/2012/05/23/us-nasdaq-facebook-lawsuit-idUSBRE84M02O20120523

2 comments

The suit against Nasdaq is fascinating in principle. In brief, trading started nearly an hour late and there were difficulties with trade confirmation. Now, the sinking price is also a reflection of a) weaker public demand than underwriters may have anticipated and b) disquiet over dubious accounting/disclosure in the runup to the IPO. But clearly, delays and stumbles right at the commencement of trading took a lot of air out of the balloon.

How to value this, though, is a very difficult question that will most likely be left to a jury. Assuming NASDAQ were found to be negligent, it could be messy; Facebook's market cap has gone down by $20 billion since it began trading (or $39bn peak-to-trough). Nasdaq's Market cap is only $3 billion.

ohffs14 yıl önce