New York, May 23 (ANI): Morgan Stanley, the lead investment bank in Facebook's troubled initial public offering, has confirmed to compensate retail investors, who overpaid when they bought stock in the social network site's flotation.
According to the Daily Star, a source with the firm said the financial company was reviewing the orders, its retail clients placed for Facebook stock and would make price adjustments if the clients paid too much. However, the person did not say what amount constituted overpaying.
The highly anticipated Facebook's IPO (initial public offering) delayed the stock's open due to technical problems on the Nasdaq Stock Market last Friday. The stock closed nearly flat on its first trading day at 38.23 dollars.
Morgan Stanley and Facebook are currently facing at least two lawsuits over the IPO.
On Thursday, Facebook's stock closed up 1.03 dollars, or 3.2 percent, at 33.03 dollars, which gives the company a market value of 90.4 billion dollars (57.9 billion pounds), down from 105 billion (67.3 billion pounds) at the end of trading last Friday. (ANI)
