recommended reading

How Facebook’s IPO was Bungled by Nasdaq’s Computers

Mark Lennihan/AP

At last, electronic exchange Nasdaq has agreed to cough up $10 million dollars to settle SEC charges related to the bungling of Facebook’s May 2012 IPO. It was an ugly start to Facebook’s career as a public company, and the aftermath hasn’t been much better: Facebook has destroyed more than $40 billion in shareholder value since its shares debuted.

As part of the ritualized flaying of Nasdaq, the SEC published a terrific tick-tock on the details of what went wrong in the offering, which resulted in what the SEC called “a series of ill-fated decisions” from Nasdaq.

Diehard Facebook geeks will remember the delay that came before the shares started trading. So here’s what happened. When an IPO begins trading on the Nasdaq exchange, there’s typically a 15-minute “Display Only Period” (DOP) before the stock actually starts changing hands.  During that timeout, the firms that buy and sell stock on the Nasdaq basically say how many shares they’re willing to buy and at what price.  Importantly, during that period—which can be extended up to 30 minutes—those firms can also decide to cancel those orders.

Read more at Quartz

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • PIV- I And Multifactor Authentication: The Best Defense for Federal Government Contractors

    This white paper explores NIST SP 800-171 and why compliance is critical to federal government contractors, especially those that work with the Department of Defense, as well as how leveraging PIV-I credentialing with multifactor authentication can be used as a defense against cyberattacks

    Download
  • Toward A More Innovative Government

    This research study aims to understand how state and local leaders regard their agency’s innovation efforts and what they are doing to overcome the challenges they face in successfully implementing these efforts.

    Download
  • From Volume to Value: UK’s NHS Digital Provides U.S. Healthcare Agencies A Roadmap For Value-Based Payment Models

    The U.S. healthcare industry is rapidly moving away from traditional fee-for-service models and towards value-based purchasing that reimburses physicians for quality of care in place of frequency of care.

    Download
  • GBC Flash Poll: Is Your Agency Safe?

    Federal leaders weigh in on the state of information security

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download

When you download a report, your information may be shared with the underwriters of that document.