Nasdaq Preparing To Release A Compensation Plan Over Facebook IPO

Facebook Logo
Next week Nasdaq is expected to release a compensation plan for investors that lost on the Facebook IPO.  The deal is expected to be entirely in cash and will most likely be above the $40 million that was originally proposed.  Nothing is finalized yet though.  The Nasdaq is working with the SEC on the second draft of the proposal.  Nasdaq originally proposed a $40 million deal where $27 million would be in trading credits, which did not make investors happy.  Investors have lost a combined $200 million or more from the botched Facebook IPO.  The new deal could be as high as $100 million and could be entirely in cash.  Facebook has not traded above the $38 offering price since their IPO in May.  The Nasdaq has apologized on the way that they have handled the deal. Check out the video of FOX Business talking about the IPO below:

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
Leave a Comment