Tweet
NEW YORK - A computer problem at an unidentified stock trader caused erroneous, exaggerated prices — some as high as $950 per share — to be posted to the Nasdaq Stock Market Friday morning for 1,680 different stocks, a spokeswoman for the Nasdaq said.
The Nasdaq said it continued to review all trades between 9:19 a.m. and approximately 9:40 a.m., when the problem occurred. While the stocks affected represent more than half of the 3,200 companies listed on the Nasdaq, the vast majority of them were among the Nasdaq's most infrequently traded stocks.
The problem has been corrected, Nasdaq spokeswoman Bethany Sherman said, and affected transactions have been broken — the money returned to the buyer and the stock returned to the seller. The Nasdaq posted a list of affected stocks on its Web site Friday.
The problem arose when a broker linked to the all-electronic Nasdaq system inadvertently put out bids for stocks that were substantially higher than the prices in which those stocks normally trade. For example, shares of Maxco Inc., a metal heat-treating company that normally trades between $3 and $4 per share, was briefly quoted at $951.47 Friday morning. It later traded at $4.10 per share.
And J.W. Mays Inc., which normally trades between $15 and $16 per share, was quoted as high as $136 on Friday.
The Associated Press said it has corrected any noticeably erroneous prices in its systems, but is waiting for further information from Nasdaq to address other questionable trades. The AP's stock tables for newspapers should only see a minimal impact at worst, and closing prices should be unaffected.
The Nasdaq said it continued to review all trades between 9:19 a.m. and approximately 9:40 a.m., when the problem occurred. While the stocks affected represent more than half of the 3,200 companies listed on the Nasdaq, the vast majority of them were among the Nasdaq's most infrequently traded stocks.
The problem has been corrected, Nasdaq spokeswoman Bethany Sherman said, and affected transactions have been broken — the money returned to the buyer and the stock returned to the seller. The Nasdaq posted a list of affected stocks on its Web site Friday.
The problem arose when a broker linked to the all-electronic Nasdaq system inadvertently put out bids for stocks that were substantially higher than the prices in which those stocks normally trade. For example, shares of Maxco Inc., a metal heat-treating company that normally trades between $3 and $4 per share, was briefly quoted at $951.47 Friday morning. It later traded at $4.10 per share.
And J.W. Mays Inc., which normally trades between $15 and $16 per share, was quoted as high as $136 on Friday.
The Associated Press said it has corrected any noticeably erroneous prices in its systems, but is waiting for further information from Nasdaq to address other questionable trades. The AP's stock tables for newspapers should only see a minimal impact at worst, and closing prices should be unaffected.
Comment