WSJ: Trader receives FB trade confirmation 5 days later

Discussion in 'Wall St. News' started by freedinner, Jun 12, 2012.

  1. Sorry if this has been already posted or discussed elsewhere, but this is remarkable:

    Unfriended: The Facebook IPO Debacle 6/10/2012 6:52:09 PM

    The highly-anticipated Facebook IPO was plagued with problems, potentially costing thousands of dollars to many small investors and further damaging Wall Street's reputation on Main Street. A Wall Street Journal report.

    Even though a previous statement showed his order as "expired", the broker booked FB shares into his account 5 days later...

    Sure the guy was greedy and overleveraged, but that's not the point here. The point is Nasdaq's failure and brokers trying to hand down the losses to clients.

    Out of curiosity: Anyone knows how IB handled the FB fiasco?
  2. Bison42


    The broker who booked that trade just kissed his career.

    If you make a mistake, own up to it and there are channels for making customers satisfied.

    Book a trade 5 days later!!!! Who took the Series 7 for this guy.
  3. Guy went in at 4:1 to the limit of his account. Looks like Chris Jr. is going to public school.
  4. jmoo


    That's emotional investing, guy puts a market order in when the IPO opens 4:1 on his account size. If he REALLY needed it he should have put a limit order in 500 shares max.
  5. He says in the video he used a limit order not a market order. It is also apparent from the brokerage statement in the opening it was a limit order that was expired at the end of the day ...

    clearly it was a horrible trade from the get go because his limit price was $46 which was crazy in the first place. There is no question he would have lost a lot of money on this (like he says 30% of his account on the first day probably) BUT at least he could have salvaged 28K or so if NASDAQ and his broker had done its job properly.

    I would really love to know who is broker was!
  6. sprstpd


    If he gets a notification saying his order is Expired without receiving a fill, then it seems like his broker should eat it. I would take my broker to arbitration on that one.
  7. That's a Scottrade statement.
  8. Ah thanks. I never liked Scottrade maybe something to do with the helicopter flying Rodger Riney!! Never trust a broker who flies around in a helicopter!!
  9. Never entrust your money to a clown flying around in a $3MM Eurocopter.