From what I’ve heard, there was at least one stock that was at 40, a few minutes later was at .01, and then a few minutes later was back up. I don’t know how far it went back up, but even if it just went up to a dollar, an investment of 1000 at the .01 level would have turned into $100,000.
So did any lucky bastards get filthy stinking rich off of this?
And how can I program a computer to do the same for me should a similar incident happen someday? I’d think any drop of over 95 percent within the span of 10 minutes of a large, established corporation is likely to be a freak incident and will almost certainly come back up pretty far in short order… would I be thinking wrong, though?
No computer necessary, just put a 95% trailing stop on any stock you’d like, or your whole portfolio. The broker’s computer will take care of it for you. But remember that yesterday was an anomaly – usually when things drop 95% (or more likely, 100%) in ten minutes, they’re not coming back…ever.
I’m sure someone would have made fat bank on the incident if those trades were to let stand. The stock change is nullifying trades during that time period, any stocks that saw an irregular loss or gain. I’m sure anyone that ‘profited’ heavily will come out on the record to complain.
There was black friday? circa mid/late 80’s were there was a major stock value drop that was at least semi-permanent short term.
Then, on the the tenth anniverserary, many stocks plummetted to a fraction of their value and then rebounded. I kinda saw that one coming and to this day kick myself for not being ready to take advantage of it.
In particular, I remember AOL stock because I was following it at the time. It was trading at 10s of dollars a share, and that day dropped into the dollar or sub dollar range and then regained most, if not all of its value. Given the drama of that day I would not be surprised if many other stocks did that as well.