Facebook (NASDAQ:FB) shares fell below their $38 issue price in pre-market trading on Monday as support from the underwriters of its IPO last week dissipated following its shaky debut on Friday.
The social networking company’s debut on the Nasdaq will be reviewed by the SEC after Facebook shares were plagued by delays and mishandled orders on its first day of trading. Nasdaq blamed “poor design” in the software it uses for driving auctions in initial public offerings.
Lead underwriter Morgan Stanley (NYSE:MS) was put in the position of having to defend the $38 price level by purchasing shares on the open market.
Facebook shares had fallen 4.19 percent to $36.63 this morning as of 9:27 a.m. EDT.
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