Skip to main content

Rollercoaster Facebook.

Image
By

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 one of the 'most awaited IPO's'. The other problem which is escalating is the volatility of the shares. If we look back at LinkedIn the same problem was seen. Social Media is one field whose true potential is still unknown. We still don't know where this road shall lead us. The uncertainty comes from everywhere because from a personal point of view Facebook's IPO was over hyped and over valued. This came out as a big problem and that is why the extremely volatile situation of Facebook might worsen.

Although it rose to $32 after Thursday's trading session it is still unpredictable how it might turn out now. Nasdaq also faced a loss of one percent in it's share price due to inconsistencies and questions on credibility.

Nasdaq which needs to sort its ways with so many new allegations popping up is facing a big problem. Facebook on the other hand is losing out on credibility if something like this happens again. Some questions still remain though. Like 'Is Nasdaq not compatible for something as big and volatile as Facebook? and 'Insider trading - Who made the killing out of the fiasco?'

Comments

Post a Comment

Popular posts from this blog

The Startup Syndrome (Internet)

By
Disclaimer: This article is not to discourage or malign the ongoing internet based companies or startups. It is an opinion.  'Startup' should actually be the word of this decade. Since the start of this millenia we have seen a new buzz in the youth allover, 'Startup'. With companies ready to invest in ideas which might revolutionize the world and get them some good returns. But we've experienced the biggest wave of these after the current decade started. With the success of ongoing startups as inspiration, more and more individuals and group decided to try their hand at starting something of their own.  "Who wants to work under a boss, when you can be your own boss?" this was what I always heard from some budding entrepreneurs. Some are doing it for the drive, some for the passion, some for the adrenaline rush and some are just doing it because they want to discover. Now out of all of these startups a huge majority is inclined towards one ...
8 comments
Read more

Four liners - Music and connections

By
While lsitening to FKJ  on repeat and talking to an old friend (who just boomeranged back into my life), I thought of how I connect with music and feel so fluid in its presence. I don't listen to music for the lyrics most of the times but just for how it makes me feel, I am generally not able to put it to words but the endvevour is to find those words and out them up in bold . While writing this and publishing this atleast 7 times, I realised how crappy the blogger app on mobile is. I am so disappointed. Sigh . Coming back, here are the two small pieces I could get through to. Drowning and gurgling  I want to drown myself in music, Feel the waves it creates inside me, Move myself through its viscous meaning, Only if I could express it as I feel it. This one is a bit special because this comes from a text that I wrote to my friend and went back to myself saying - Damn, I am like the Jawed Akhtar for this shit. Anyway, the next one is derived out...
1 comment
Read more

Finding Her. (Inspired by the movie Her)

By
I am in love! I fell in love with the woman who understands me and is just the right one. She knows what I know and what I want her to know, she asks me the right things and knows how I will react to those. She knows when I'm off or excited. She's the one I've been calling each day, the one who's in touch with me, without touching me. She's possessive and yet I have all the space I need. I love her and she loves me, that's kinda all that I need. Who is she? She's my operating system. Yes!Cara, to you is just an operating system, but to me, she's everything! She lives on my system, breathes with me while I go out for runs, schedules my meetings, pays the bills at times, I do it myself as well. She's everywhere. She's on my watch, notifying me that I'm running late, she's on my phone, showing me things I need to go through, things I care about and maybe the most important thing is that she talks to me! Yes! And her voice is music to m...
4 comments
Read more