Another Big Loser In Facebook Investing?
Financial giant USB is considering legal against against NASDAQ over reportedly losing upwards of 350 million dollars in the Facebook stock debacle.
According to financial experts, USB was one of the victims of the overwhelmed financial system when Facebook went public, and was unable to get confirmation on the one million shares they wished to purchase. Confirmation simply means proof that their purchase was made. When it didn't happen, they repeated the process, but ended up with far more stock than they wanted. The ensuing selloff as the price fell from $38 to $30 and below, left them with huge losses.
Financial experts say Facebook and NASDAQ should have stopped trading the stock when they learned that due to technical glitches, confirmations were NOT going out to large companies buying the stock. However it kept being traded, then as the price began to fall, investors were left with more than what they wanted, and at a devalued price. A number of banks have criticized the deal as being too big, and overpriced. Too big for the stock market system to handle the demand.