New Money

Google's Out-of-This-World Stock Drop a Fluke

By Katy Marquardt

Posted: October 1, 2008

An odd thing happened before the stock market close yesterday. Google's stock was mostly flat all day, until 3:57 p.m., when it dropped severely. The shares, which opened Tuesday at $419.51, rose to a high of $423.51, then mysteriously plunged roughly 10 percent to $341.43 just minutes before the closing bell.

It turns out that the stock's drop was the result of erroneous trades sent from another exchange, according to a Nasdaq spokeswoman (via Dealbook).

According to Nasdaq OMX, which operates the Nasdaq stock market ... In a message posted on its Web site, Nasdaq said it was adjusting Google's closing share price to $400.52, or up 5.12 percent, and that it was canceling trades above $425.29 or below $400.52 made at or after 3:57 p.m.

Nasdaq said late Tuesday that it is "investigating potentially erroneous transactions," but didn't offer more details.

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bobb of MN @ Oct 07, 2008 14:01:16 PM

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bob of NV @ Oct 07, 2008 14:00:02 PM

MARKET PRICE

I once placed a trade at "market". I knew the stock was going to shoot up.

The stock shot up.I had a few thousand dollars in my account. A trade went thru somehow -- I purchased about $56,000 in shares !!

When I realized what had happened -- the stock had dropped and I had lost substantial money -- I contacted Ameritrade to alert that somehow these shares were purchased, not when I placed the order, with the funds I had -- but late --after the stock rose with funds I did not have.I got no relief or assistance.

I was not as upset about not earning $50 K --I was afraid of the $8k I now owed Ameritrade.

I thought -- how do "I" fix this --so I short sold the shares as

the stock dropped.

Beware of market.

Rob of OR @ Oct 03, 2008 14:46:00 PM

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New Money

Katy Marquardt, a senior editor at U.S.News & World Report, takes a contemporary look at happenings in the financial world and aims to help young investors get going with their portfolios--or just sound cool at cocktail parties. Have a question? E-mail Katy at newmoney@usnews.com

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