Individual investors bought shares of less volatile companies and took protective measures by hedging their holdings last month as the Standard & Poor’s 500 Index reached a five-year high, TD Ameritrade Holding Corp. said.
Facebook Inc.’s debut on the Nasdaq Stock Market turned into another setback for American equity exchanges, with the $16 billion initial public offering plagued by delays in trade confirmations, crossed quotes and signs that orders were mishandled.
Nasdaq OMX Group Inc., under scrutiny after shares of Facebook Inc. were hit by delays and mishandled orders on its first day, blamed “poor design” in the software it uses for driving auctions in initial public offerings.
Facebook Inc.’s initial public offering, plagued by trading errors and a 16 percent drop in the share price, will push more individual investors out of a stock market they already distrust after the financial crisis.
Knight Capital Group Inc. estimated that it lost about $30 million to $35 million trading Facebook Inc. because of technical problems at Nasdaq OMX Group Inc. related to the social-media company’s initial public offering.