Facebook IPO Compensation Approved and 2 Hot Stocks to Watch
Facebook (NASDAQ:FB): On Monday, the U.S. Securities and Exchange Commission stated that it approved a plan by the Nasdaq stock exchange to pay $62 million in reimbursements to investment firms that lost money due to technical problems during Facebook’s initial public offering last year. According to the Nasdaq’s statement in June, it would pay $40 million, but it later increased the amount to $62 million. Facebook went public on May 18 amid great fanfare, but computer glitches at the Nasdaq delayed the start of trading caused chaos. Technical problems caused many investors to avoid the shares that morning, and they sold them later in the day or even from knowing whether their orders went through. According to some, they were left holding shares they didn’t want.