The ballad of Knight Capital: How a company’s software messed up the market
- $440 million the amount Knight Capital lost after a trading glitch on Wednesday led the company to send erroneous orders on 140 separate stocks
- 75% decline the fall in the company’s stock since Tuesday; the company blamed its problems on new software which suffered from glitches source
» As for the stocks affected: Some of the smaller stocks, like Wizzard Software (which made a dramatic leap from $3.50 to $14 as a result of the trading glitch) had their trades cancelled, with no penalties for the steep increases. Other bigger stocks, like Abercrombie & Fitch, are still being investigated. Glitches in complex software like this could be spooking smaller investors, already weary of the stock market after the financial crisis and the 2010 Flash Crash.
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