Facebook IPO: Investors still dealing with aftermathJune 1, 2012: 3:45 PM ET
It's been two weeks since technical glitches at the Nasdaq caused mass confusion during Facebook's big debut, and investors are still outraged as they deal with the aftermath.
Despite their best efforts, there's been little word of progress -- in fact, little word of any sort -- from the bigger players involved.
Nasdaq (NDAQ), the root of all the woes, has been the most tight-lipped of all. Numerous spokespersons at the exchange have declined to comment about any developments since the problems that botched the market opening of the third-largest IPO in U.S. history. Instead, they have repeatedly pointed to a trader alert issued May 21, the Monday after Facebook's debut, which highlights the issues that caused the delays and steps it took to resolve them.
One of those steps was reminding traders who were impacted by its errors to submit claims for reimbursement, but Nasdaq has yet to indicate whether it will make up customer losses, not to mention by how much or when.
Online brokerages, including Fidelity and Scottrade, say they're continuing to work through the mess.
"We're working with regulators, market makers and the Nasdaq to represent all customer trading issues, and will continue to do so in order to mitigate the impact to our customers," said Stephen Austin, Fidelity spokesman. "We take our customers very seriously and are advocating on their behalf for a fair outcome."
But Fidelity clients aren't satisfied.
Like many angry customers, Nader Massoumi has (ironically) been voicing his frustrations on Fidelity's Facebook page. According to Massoumi's posts, he ended up with 200 shares of Facebook in his account on May 21 despite a cancel order request that was pending all day on May 18.
He said that a Fidelity representative told him to sell his shares, but he questions how Fidelity could advise trading shares that were "executed improperly" and do not belong to him. And with Facebook's (FB) stock down about 27% from its IPO price of $38, selling the unwanted shares would result in a significant loss for Massoumi.
In response to Massoumi's complaints, Fidelity said "if the market centers determine a correction is warranted, the accounts will be adjusted accordingly. At this time, we don't have an estimated timeframe as to how long this process will take. But in the meantime, you should assume any shares of Facebook stock credited to your account are owned by you and available for trading. And, any trades you place on the security will not effect a potential correction."
Still disgruntled, Massmoumi said he is more interested in knowing the "details on what Fidelity has accomplished for the past two weeks to resolve" erroneous trades.
Other investors are in the same boat.
Thomas To 's Scottrade account showed that his order for 200 shares of Facebook had been successfully cancelled at the end of the day May 18. But four days later, he got a call from a Scottrade representative telling him otherwise.
"My complaint is that I didn't know I owned something until four days later," said To, a 37-year-old life insurance analyst in Irvine, Calif. "One Scottrade employee said that this wouldn't be an issue if the stock price was up. That is besides the point."
Recognizing that Nasdaq's delayed execution reports created a number of concerns for clients, including cancellation issues, Scottrade said "each situation is unique and Scottrade is continuing to work with clients individually to address their concerns."