NASDAQ To Earmark $13 Million For Bad Facebook Trades

Facebook appeared to be on a roll - its founder celebrated his 28th birthday last Monday, and the company went public a few days later. But it seems that the road to success seems to be a bit of a bumpy one, with the start of Facebook's IPO delayed by some technical glitches.

Experiencing a delay of around 30 minutes, needless to say, it wasn't NASDAQ'S finest 'half' hour. Leaving those involved a tad disgruntled, NASDAQ has agreed to reimburse investors as much as $13 million (£8.2 million) as part of its damage control.

According to The Wall Street Journal, the offer was made in an attempt to cover losses for brokers as well as institutional investors who lost money due to the glitch.

On Sunday, Eric Noll, head of transaction services for NASDAW OMX, explained to reporters that approximately 30 million shares were affected - but apparently, the total amount of money lost could be as much as $100 million (£63.3 million).

The reason behind the glitch lay with a problem in NASDAQ's system. Facebook's stock opened at $42 but closed at $38.23 - at just 23 cents more than its IPO price.

Chief executive of NASDAQ OMX, Robert Greifeld, apologised on Sunday for the mishap: "This was not our finest hour," Greifeld stated. He also went on to say that NASDAQ is "humbly embarrassed" by the technical error, but claims that the first day of trading in Facebook stock was "successful."

Source: Mashable