CNN.com - Dec 9, 2005: "Japanese brokerage Mizuho Securities scrambled on Friday to clean up the mess left by a trader who mistakenly offered tens of thousands of shares for 1 yen apiece, costing the firm at least $224 million.
Admitting to the massive error, the brokerage unit of Mizuho Financial Group said the trader entered what was intended to be an order to sell one share of J-Com -- a staffing firm that made its market debut on Thursday morning -- for 610,000 yen ($5,065).
Instead, 610,000 shares, valued at $3.1 billion at J-Com's IPO price, were offered for 1 yen each.
The order represented more than 40 times the number of J-Com's outstanding shares, which have a total market value of 11.2 billion yen ($93 million).
No buyer was actually able to pick up the phantom shares for 1 yen due to market rules designed to limit price fluctuations, but the shares may have gone as cheaply as 572,000 yen ($4,750) each, a more than 9 percent discount to the intended sale price."
Monday, December 12, 2005
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