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False Google Crash Scares Investors 
By: Doug Caverly 2006-08-01 Google's stock price dipped down to about $38 last week (from roughly $391). Luckily, this was a mistake, and not a catastrophic crash, but the incident was more than enough to cause concern among investors.
As Dan Dorfman of the New York Sun observed, this occurrence "surprisingly managed to escape the eyes of the financial press and was never reported even though the decline - an astonishing drop of nearly $350 a share in a mere 10 minutes - was the greatest ever in the history of the stock market in after-hours trading - and undoubtedly in regular trading, as well." Dorfman described the scene, which played out Thursday afternoon. "At about the $391 price point, an order originated on Instinet-ATS (a Nasdaq company) that triggered trades between 4:10 p.m. and 4:12 p.m. at a price as low as $38 (representing a drop of almost $350 a share from the close). In brief, someone from a Nasdaq member firm punched in an erroneous figure to commence a trade." It's safe to assume that any Google stock owners who saw this dip became "concerned." One investor nearly got an ambulance ride from all the excitement. "He had bought 200 shares earlier last week at around $380, or about $76,000," Dorfman wrote, "only to discover from his broker he was suddenly sitting with a fast and damaging paper loss (at the quoted $38 a share) of about $68,400." The broker said his "customer . . . became hysterical, complaining of chest pains and crying. 'The way he sounded, I thought for sure the man was going to have a heart attack,'" the broker said, according to the New York Sun. Between the people who thought they'd lost fortunes, the people who tried to buy the stock when it hit $38, and bystanders who witnessed the whole ordeal, Nasdaq is getting an earful about this. Tag: Google Add to  Del.icio.us |  Digg |  Yahoo! My Web |  Furl
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About the Author: Doug is a staff writer for SearchNewz, WebProNews, InternetFinancialNews, and SecurityProNews. |
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