The Wall Street Journal reported that Facebook executives were concerned that switching exchanges would only further erode confidence in the company’s shares, which opened trading at $38 apiece and closed this past Friday at $31.09. The stock hit a low point of $25.87 per share June 5.
Facebook executives had met with New York Stock Exchange parent company NYSE Euronext in the days following the bungled IPO.
According to the Journal, Facebook executives have privately blamed Nasdaq for simultaneously releasing 12 million trades that had been held back by its technical issues at 1:50 p.m. ET on the day of the IPO, saying that the wave of sell orders forced the stock’s price down.
Nasdaq Chief Executive Robert Greifeld said while speaking at a conference of corporate directors at Stanford University’s Law School last weekend, as reported by The Wall Street Journal:
Testing didn’t account for the increasing volume at which cancellations can come in. There was not enough of a check and balance. We did not have enough business judgment in the process. If we knew it would take to 1:50 (p.m.) to get the allocations out, we might have had a different (outcome).
Readers: Do you think Facebook made the right move in sticking with Nasdaq, or should it have more seriously considered the overtures from the NYSE?