Nasdaq Reportedly To Be Fined For Facebook IPO Mishandling

It appears that Nasdaq is about to be punished for its mishandling of Facebook’s initial public offering last year. However, as The Wall Street Journal reports, it’s more of a slap on the wrist than a major penalty.

The Journal wrote (behind a paywall) that Facebook is in talks with the Securities and Exchange Commission regarding a settlement over Facebook’s IPO. Nasdaq’s settlement will include a penalty that will likely be around $5 million, which the Los Angeles Times notes is nothing compared with the $500 million lost by brokers and investors.

Nasdaq comes under scrutiny for several technological mishaps, including failing to send trade confirmations to investors, which left them unsure about whether or not they bought shares at the prices they paid.

Additionally, Nasdaq is in separate talks with those who lost grand amounts of money in Facebook’s IPO.

Related Stories
Mediabistro Course

Instagram Marketing

Instagram MarketingStarting October 27, learn how to gain likes and followers on one of the most popular social media platforms! In this course, you'll learn how to develop an Instagram strategy that will make your profile stand out and gain new followers, tell your brand's story through photos, and use your profile to drive your sales and business objectives. Register now!