No, It's Not a Split: GOOG Tanks Due to Errors
Many would love it if Google (GOOG) would split their stock. After all, the price it currently sits at makes it difficult for the average Joe to buy 100 shares. Given that, some many have read their stock ticker yesterday when this all started and thought "great!"
But one should not believe everything one reads. While that applies to politics and the news, it sure as heck also applied to your stock ticker right at the close of trading yesterday. Hearts may have stopped and fingers may have clacked across keyboards as GOOG seemed to dive to 1 penny. But if you bought into that, hopefully you didn't buy huge amounts of that penny stock, because it was a mistake, and all you would have done is wasted your time ... and if you sold something else to fund it, that's not going to be reversed.
NASDAQ hasn't indicated why this happened; they just said somewhat cryptically:
Pursuant to Rule 11890(b) NASDAQ, on its own motion, has determined to cancel all trades in security Google Inc Cl - A "GOOG" at or above $425.29 and at or below $400.52 that were executed in NASDAQ between 15:57:00 and 16:02:00 ET. In addition, NASDAQ will be adjusting the NASDAQ Official Closing Cross (NOCP)and all trades executed in the cross to $400.52. This decision cannot be appealed. MarketWatch has coordinated this decision to break trades with other UTP Exchanges. NASDAQ will be canceling trades on the participant’s behalf.
In other words, there was some sort of error, we're adjusting the closing price, cancelling obviously wacko trades, etc. etc.
While the price did plummet, it also recovered quickly, as you can see in the dizzying graph at the close of trading yesterday, when this all happened.
What we'd like to know is if any HH readers noticed the "crash," tried to get in, or just said "WTF" and watched the carnage?
But one should not believe everything one reads. While that applies to politics and the news, it sure as heck also applied to your stock ticker right at the close of trading yesterday. Hearts may have stopped and fingers may have clacked across keyboards as GOOG seemed to dive to 1 penny. But if you bought into that, hopefully you didn't buy huge amounts of that penny stock, because it was a mistake, and all you would have done is wasted your time ... and if you sold something else to fund it, that's not going to be reversed.
NASDAQ hasn't indicated why this happened; they just said somewhat cryptically:Pursuant to Rule 11890(b) NASDAQ, on its own motion, has determined to cancel all trades in security Google Inc Cl - A "GOOG" at or above $425.29 and at or below $400.52 that were executed in NASDAQ between 15:57:00 and 16:02:00 ET. In addition, NASDAQ will be adjusting the NASDAQ Official Closing Cross (NOCP)and all trades executed in the cross to $400.52. This decision cannot be appealed. MarketWatch has coordinated this decision to break trades with other UTP Exchanges. NASDAQ will be canceling trades on the participant’s behalf.
In other words, there was some sort of error, we're adjusting the closing price, cancelling obviously wacko trades, etc. etc.
While the price did plummet, it also recovered quickly, as you can see in the dizzying graph at the close of trading yesterday, when this all happened.
What we'd like to know is if any HH readers noticed the "crash," tried to get in, or just said "WTF" and watched the carnage?
