|  | | 2012 News and Press Releases | | |
HEADLINE NEWS:
Facebook IPO Mishandling Hurt Investor Confidence: TD Ameritrade
John McCrank
Reuters. June 7, 2012
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EXCERPT: The mishandling of Facebook's initial public offering in May has rattled the confidence of retail investors, who were already leery of financial markets following a string of crises over the past several years, Fred Tomczyk, chief executive of TD Ameritrade, said on Thursday. Trading glitches on Nasdaq OMX Group Inc's exchange led to a 30-minute delay in Facebook's highly anticipated market debut on May 18, after which market makers - who facilitate trades for brokers - failed to receive confirmations of their opening orders for about two hours, leading to more than $100 million of losses.
In early trading on Thursday, shares were down 0.8 percent at $26.56, significantly lower than its $38 a share IPO pricing and the $42 it opened at on its debut trading day. The steep drop in the company's share price has triggered questions over its lofty IPO pricing.
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