$300 Million Fat Finger Error on The Stock Exchange
Having fat fingers can be disastrous if you trade on the stock exchange market.
For one broker working at Mizuho Securities, 8th December 2005 was a dark day. Instead of selling one share of J-COM Co. Ltd. for 610,000 yen, the unfortunate soul did the unthinkable. He sold 610,000 shares for 1 yen.
It could happen to anyone! Mistakes make us human. Yeah, right! Tell that to the owners of Mizuho Securities, who lost almost $300 million with that simple typo. It equaled the company’s net profit for the previous year.
You will be surprised to know that this was not the first time something like that happened at Tokyo Stock Exchange (TSE). In fact, such heart-stopping incidents are rather common in an environment where buying and selling at a blink of an eye are mundane.
The Japanese government took measures. No, it did not reintroduce ritualistic hara-kiri for distracted stock brokers. Instead, it offered companies to undo transactions that are obviously too boisterous to be real.
The next unbelievable mistake will turn you into a hoarder!