Bad Stocking Stuffer: A Stock Market Blunder

Image by Joseph Pisani via The Associated Press

Twitter, the multi-billion dollar social media giant can’t seem to stray from stock market news.

With skyrocketing popularity among the general populace, advertisers and celebrities alike, Twitter has undergone massive growth over the past few years. Earlier in 2013, Twitter announced its plan to go from private to a public company, and is projected to sell its shares at between $17-$20 per unit.¹ However, “Tweeter”, a different company with a similar name was the source of this groundbreaking news.

Shares of Tweeter (a bankrupt and defunct US electronics distributor) which were previously valued at a penny per stock, surged more than 1,000% during the first 8 days of October, when excitement and anticipation surrounding Twitter’s imminent IPO stocks resulted in confused investors purchasing the wrong company’s shares.²

Bloomberg’s stock market analysts said more than 14.3 million shares of Tweeter were exchanged on October 4^th, the most since 2007.³

This astounding stock market fiasco is a striking reminder for investors, businessmen and consumers alike: to thoroughly research and be informed before coming to a decision on any matter.

 Sources:

¹http://www.marketoracle.co.uk/Article42811.html

²http://www.theglobeandmail.com/report-on-business/tweeter-stock-symbol-changed-following-twitter-mix-up/article14751690/

³http://www.bloomberg.com/news/2013-10-04/twitter-look-alike-ticker-triggers-684-advance-in-penny-stock.html