This morning one of my stocks shot up by 1000% because someone but a buy order in at 121.00 dollars instead of 12.10 dollars.
I didn't catch it in time to get any benifit, but is this kind of foolishness common on the stock market? The unfortunate side effect of this is that it has completely skewed the chart, and it looks like a flat line now except this morning.
2007-06-19 13:01:17 · 3 answers · asked by Ninja grape juice 4 in Business & Finance ➔ Investing
Doug S: This stock was Paramount income trust (pmt.un) on the toronto stock exchange. That's quite an odd coincidence.
2007-06-19 15:28:39 · update #1
It actually happens all the time, but you cannot profit from it as it is usually caught and deleted (aka busted) if it was an order entry error, or didn't actually happen if it was a reporting error. Furthermore, although it looks like an amazing opportunity, you are not able to take advantage of it. If someone puts a buy order in, they are always entitled to the best price available at the time of execution, so if they put in an order to buy 1000 shares at $121.00 they would get as many shares were available at $12.10 and then the order would continue to fill at the best price available for shares available above that price.
Hope that helps!
2007-06-19 18:13:24 · answer #1 · answered by esskay33 2 · 0⤊ 0⤋
That's a funny thing! Most of the stocks I have show the same effect on opening yesterday 18 June. they are all on the Toronto Exchange: BNS, FM, CWB, CNQ, ECA, MFC and TCP but not BWR, III, RY. The data is supplied by Nomura Research Institute, Ltd. I thought it was a system glitch. It sure screws up the intraday chart but the daily OHLC candlestick is fine.
2007-06-19 21:44:48 · answer #2 · answered by Doug S 4 · 0⤊ 0⤋
It doesn't happen very often at all -- but boy, when it DOES happen...
You do remember the $330 MILLION dollar mistaken stock order in Japan a couple of years back?
http://dev.rte.ie/business/2005/1222/japan2.html
2007-06-19 20:18:31 · answer #3 · answered by enoriverbend 6 · 0⤊ 0⤋