Why ETFs can’t ‘like’ Facebook IPO
(NEW YORK CITY) The Facebook IPO clearly dominated the last Friday’s financial news coverage globally – even if there still not yet a social media ETF (basket) on the market or a index including FB. Facebook Inc. priced its shares at $38 apiece for an initial public offering that would make it the most valuable U.S. company at the time of its stock market debut.
The public social network priced at the top end of the range it set earlier this week, when it said it would price its IPO at $34 to $38 a share from $28 to $35 a share, in a sign of the tremendous investor appetite for the offering. At $38 a share, Facebook is valued at $104 billion, the biggest-ever valuation by an American company at the time of its offering. Ironically, the NASDAQ order processing of the tech company has been done manually in most cases because of serveral problems with the order system. This caused serious delays in the settlement of the stocks and most brokers couldn’t answer the most dominant client question on last Friday: “Did I get Facebook shares?”.
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