The Nasdaq stock exchange says it has earmarked $40 million US to reimburse investors whose trades didn't go through because of a technical glitch when Facebook shares went public last month.
FINRA, the financial industry's self-regulating body, says it will review claims for compensation on a case-by-case basis. But Nasdaq says it is prepared to reimburse investors whose valid trades didn't go through as planned, potentially costing them money.
One of the most hotly anticipated initial public offerings in recent memory, Facebook shares sank like a stone of out the gate, from their IPO price of $38 to trade at $27 today.
Trading was initially supposed to start at 11 a.m. on May 18 in New York, but was delayed by almost an hour due to unexplained glitches on Nasdaq's trading platform processing the transactions.
Nasdaq says it will reimburse any investors who tried to sell shares at $42 but were unable to and had to sell at a lower price. The market also says it will reimburse any investors who tried to buy at that level but were unable to.
The bourse says the problems have been fixed, but it has hired IBM to review its operating systems.