Tech stocks exchange to change IPO auctions after Facebook glitches
Tech stocks IPO auctions will be revamped, Nasdaq CEO says, after delays plagued Facebook's first day of trading. SEC investigating to see if delays hurt trading in the tech stock's underwhelming IPO.
NEW YORK — The CEO of NASDAQ says the stock exchange is "humbly embarrassed" by its bungling of Facebook's hugely anticipated debut as a public company on Friday.
Robert Greifeld tells news media there's no indication the delay contributed to the underwhelming performance of Facebook's stock, which ended at $38.23 — 23 cents above where it began.
Facebook's stock was expected to start trading at 11 a.m. but didn't open until 11:32 a.m., and some investors didn't learn for hours whether their orders went through.
Greifeld called the social network's first day of trading "successful." He said late order cancellations caused a glitch, according to reports published Sunday. He said Nasdaq's board met Saturday and plans to change its IPO auction process.
The Securities and Exchange Commission has said it is investigating.