The U.S. Securities and Exchange Commission (SEC) has approved a proposal to compensate brokerages who lost money as a result of the technical difficulties that surrounded Facebook Inc.'s May 2012 initial public offering (IPO).
The proposal, which was submitted by Nasdaq, a division of Nasdaq OMX Group Inc., is offering affected companies a total of US$62 million in settlement dollars.
Facebook's IPO was initially delayed by 30 minutes as a result of technical issues at the Nasdaq. When that occurred, a secondary system to get the trading moving was put into place by Nasdaq, which caused further delay.
When the Facebook stock then came down after its initial gain, some investors experienced significant monetary losses.
Facebook's IPO raised US$16 billion.