Story of the Week by Stratzy

$225 Million Mistake        

??Do you remember your school days? When you probably have made a lot of errors in your answer sheet and there was a common mistake that everybody might have made in their school life of calculating the correct answer to a mathematical problem but putting some different number by mistake or in hurry. I’m sorry for bringing those harsh flashbacks again?? but now you would probably laugh looking back at those mistakes there was one mistake made by a Japanese Brokerage Firm named Mizuho Securities which haunts them to date and it was a $225 Million error. The trouble began on the regular trading day when a trader at Mizuho Securities attempted to sell 610,000 shares of J-Com Co., a job recruiting firm that was making its public debut on the exchange, for 1 Yen (Less than ?1) each. It had planned to sell 1 share for 610,000 yen (?3,67,880) instead ??♂?. Worse, Mizuho's order consisted of 41 times the number of J-outstanding Com's shares, but the Tokyo Stock Exchange processed the order regardless. Another trader attempted to cancel the order three times, according to Mizuho, but the exchange replied it does not invalidate transactions based on erroneous orders. The Financial Services Agency, Japan's financial watchdog, launched an immediate investigation into what went wrong and how to avoid a repeat.

J-stock Com's debuted on the Tokyo exchange's mothers’ market at 672,000 yen (?4,05,271) before plummeting to 572,000 yen (?3,44,963). However, after Mizuho Securities' sell order, a large buy bid helped push J-Com to 772,000 yen (?4,65,580) at the closing. The news is considerably worse for Mizuho Securities as Mizuho Financial Group stated it will cover all losses incurred by its security business as a result of J-erroneous Com's trades. So, this is how a simple mistake of putting the wrong quantity can wipe out your profits instead be a smart investor and trade through Stratzy App ?? and forget all the hassle of researching about stocks, picking the right one, putting qty, and price to us and reap only profits ??.

Shared by Nikhil Bhandari - Head of Finance & Operations @ Stratzy