Monday, August 26, 2013

Costly Typo

Today’s news brings us a story about a stock trader’s typographical error that caused one corporation’s shares to drop a staggering 99.8%.

From the Huffington Post:

“We’re all guilty of the occasional typo, just not one with such drastic consequences.

“Israel Corporation, one of Israel’s largest companies, saw its share price plunge 99.8 percent in a matter of minutes Sunday thanks to a trader typing error, according to the Globes, an Israeli business publication. Market sources believe the dramatic plunge, which stopped trading on the Tel Aviv Stock Exchange for a short time by activating its automatic fail safe mechanism, was caused by a trader who wanted to sell shares of another company, but accidentally entered Israel Corporation instead.

“The error pushed Israel Corporation’s share price down to $58, from $46,385, according to CNBC.”

Visually, it looked something like this (graphic from Google Finance):

Now that’s one expensive finger fumble!

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