With Nasdaq now coming up with the real story on the 'Facebook fiasco' we can now blame it all on the delay in Nasdaq's systems (and insider trading). According to the reports the basic problem started with the late launching. Initially the shares were supposed to be launched as soon as the market opened up but then it opened up a little later around 11:30. The real problem was that at that time the pre-orders still existed along with the orders incoming and Nasdaq's system couldn't take this. Nasdaq's system showed lags as the pre-orders didn't process almost till 1:50. By that time the stock had reached a new price. around $42. So what happened was that the people who ordered the shares at the offering price were getting their deals coming through hours late and at prices they didn't order the shares for. Due to this major banks and other institutes saw major losses. Facebook's stock fell from a peak of $42 to $31.91. This was a big fall for on
Theories. Thoughts. Short stories. Poems. Economics?