I'm new to the stock market and I'm having a hard time understanding the following:
>In December 2005, a trader on the Tokyo stock exchange made what’s known in the business world as Code 11 – that is he completely fucked up!
Obviously the trader had his pants on backwards that day, because he intended to trade one share at 610,000 yen, but instead placed an order for 610,000 shares at one yen each.
No amount of pleading to the Tokyo Stock Exchange could reverse the error and the firm’s loss was around $18.7 million in damages. Christmas bonus forfeited!
Source: http://www.planetdolan.com/10-innocent-typos-that-had-shocking-consequences/2/
Can you please help me /biz/? I understand that a share is ownership of a company and the value dips and climbs based on various factors, that's it.
>>1068237
bump
Imagine you want to sell your dragon dildo collection on craigslist.
You meant to sell one of them for Y610,000, but instead sold 610,000 for Y1 each.
By the time you noticed your mistake, they had already loaded up the truck.
>>1068560
Oh, so the 610k shares sold at 1 yen a piece could have been sold for more than 1 yen a piece right?
That's weird, I thought shares had a permanently fluctuating price that you could not change {ie 1 share worth $100 must be sold at $100 no matter what}
Dam, I still have a ton to learn. Thank you so much for helping me understand, now I can go to bed in piece.
You don't have to sell or buy at the market price
Any ask or bid price entered is public information. If you ask $1 for a share worth $8, anyone looking at the market depth (see pic) will buy them pretty quickly
>>1068724
>looking at the market
Be real with op so he understands how this works- a computer program will buy it- the computer program with the fastest internet speeds to work with
By the time your eyes send the data to your brain, the stock has already been sold- no human can do it.
>>1068742
That's not relevant to the explanation
>>1068596
If there's a buyer, they can sell for any price.
Imagine somebody has something worth 610k and they put it on the market. But by mistake, they make the price $1 and sell 610k items at $1 each. Why would you not buy?
