Following the problems encountered during the recent initial
public offering (IPO) of
) last Friday,
Nasdaq OMX Group Inc
) has decided to alter the regulatory procedures carried out during
an IPO, as per media releases. This is important because an
interruption like this in a computer-driven platform weakens the
confidence of investors.
Nasdaq believes that some effective alterations in the IPO
procedures would do away with the problems, which delayed the much
awaited IPO of Facebook from its scheduled time. This left traders
apprehensive about the completion of their orders for shares.
However, Nasdaq pointed out that the delay primarily stemmed
from certain technical glitches that occurred on its trading
platform while processing order cancellations. The technical
disorder induced other regulatory bodies to investigate into the
issue and resolve it.
The mishap came as a surprise as Nasdaq otherwise is renowned
for delivering superior technical performance. However, following
the technical malfunction, Nasdaq is leaving no stone unturned to
enhance its technological services to remain competitive.
Notwithstanding, Nasdaq still commands an advantageous position
with new companies that are keen on being listed on it.
), which previously listed on Nasdaq's close competitor
New York Stock Exchange
), has decided to trade on Nasdaq from June 4. They opine that
Nasdaq is "cost effective" and provides higher exposure to
Nasdaq currently retains a Zacks #4 Rank, which translates into
a short-term Sell rating. We also retain a long term Neutral
recommendation on its shares.
FACEBOOK INC-A (FB): Free Stock Analysis Report
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