Facebook to leave Nasdaq probably. A tsunami IPO if ever there was one.

The Facebook IPO seems to have been a real watershed for everyone but now it has enveloped Nasdaq. 


If you recall, the IPO opening was delayed by technology glitches (ironic or wha?) on the exchange which meant that brokers weren't able to determine what was traded and what was not. Really a very poor show, which resulted in Nasdaq now offering some of those brokers secret compensation (millions of dollars) and it has also resulted in some of those brokers taking class actions against Nasdaq.


Now apart from the money involved, here we have a situation where your clients are suing you. The Brokers, on whom Nasdaq depends, are disgruntled to say the least and are suing Nasdaq. So when you get your clients suing you, things aren't looking good for the future.


But it all got worse over the weekend. It would seem that given all of the issues, Facebook are considering moving off the Nasdaq Exchange. And that, ladies and gentlemen, is a hammer blow.


Nasdaq (National Association of Securities Dealers Automated quotations) is the 2nd largest exchange after The New York Stock Exchange. It is owned by a private financial services corporation based in NYC, that own a number of other exchanges. Started in 1971 replacing the old "OTC" system, it was the first exchange to start trading online and consequently, very quickly, became the darling of internet companies and most notably in the first bubble.


Famously of course, its former non-executive chairman was Bernie Madoff and one time being the largest market maker on Nasdaq. Madoff started with 5,000 usd from working as a lifeguard and sprinkler installer.


When we (via net works)  floated on Nasdaq in March of 2000, there were 23 other companies floating the same day, so you get its popularity. Hence it was almost the obvious choice for Facebook.


And now that Facebook are thinking of going, it's going to take some of the tech sheen away from Nasdaq coupled with the ongoing damage that the IPO has done to the exchange. If you were going to IPO tomorrow, would you be thinking Nasdaq?


The Facebook IPO has been a tsunami. And the shock waves will be felt for a time yet. 


The SEC investigation into insider dealing has tarnished Wall Street and given the convictions on Friday, some will be shaking in their fine leather shoes.


The Facebook price collapse has tarnished Facebook in what some see as young brat billionaires showing distain for regular investors. 


And it already has reduced the stock price of many other tech companies who won't be sending Facebook Christmas Cards this year.


Not a good picture all round.
Not good for the Social space at all.