- NASDAQ knew its systems were broken before the Facebook IPO, and instead of aborting the offering and facing huge embarrassment, it went ahead. Traders then lost hundreds of millions of dollars as they tried to buy and sell Facebook stock without getting confirmation that their trades had been executed.
- NASDAQ made the problem worse on Monday. NASDAQ told traders who thought they had sold their Facebook stock on Friday—but had actually not—to fill out a form by noon. This form asked traders to list the price at which they thought they had sold their stock and the price at which they actually had. Problem was: Many of these traders had not yet actually sold their stock. Because the form required an actual selling price, many did, dumping tens of millions of shares of Facebook stock on the market, and sending the stock price plummeting.
More about Facebook's Valuation HERE