Morgan Stanley May Refund Some Facebook Investors
NEW YORK (CBS/AP) — Morgan Stanley, the lead investment bank in Facebook’s troubled initial public offering, will compensate investors who overpaid when they bought Facebook’s stock in Friday’s IPO, according to a source familiar with the matter.
This person said the firm is reviewing orders its retail clients placed for Facebook stock, and will make price adjustments if the clients paid too much. The person spoke on condition of anonymity because they were not authorized to discuss the matter publicly. The person did not say what amount constituted overpaying for Facebook’s stock.
The world’s largest social network’s IPO was highly anticipated. But technical problems with the Nasdaq Stock Market delayed its open on Friday, and the stock closed nearly flat on its first trading day at $38.23.
Shares of Facebook, down about 13 percent since its Nasdaq debut, closed Thursday up just over three percent.
(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)