NEW YORK, N.Y. – The Nasdaq stock exchange says it will set aside $40 million to reimburse investors ensnared by technical problems on Facebook’s first day of trading.
FINRA, the financial industry’s self-regulatory group, will review investors’ claims for compensation.
Computer glitches on Facebook’s first day of trading May 18 kept some investors from buying or selling shares and delayed the initial trades in the stock by half an hour.
Nasdaq says it will reimburse investors who tried to sell shares at $42 or less but either couldn’t sell or sold at a lower price than they intended. It will also reimburse investors for purchases priced at $42 that weren’t immediately confirmed. The stock initially priced at $38.
Nasdaq says the problems have been fixed. It has hired IBM to review its operating systems.