The bottom-fishers who picked up Knight Capital shares
anywhere near their $2.27 low Thursday were cheering Friday, as the stock
popped nearly 25% on a report that the firm secured a credit line that should
let it survive into the weekend, Forbes tells us.
Knight has been pushed to the brink this week after taking a
$440 million loss due to erroneous orders created by new trading software that
caused erratic trading in dozens of NYSE-listed stocks Wednesday. That loss,
more than four times Knight’s annual profits, raised concerns that the firm
might not survive to the weekend.
Those fears were given something of a respite Friday though,
after the Wall Street Journal reported that Knight has been telling Wall Street
brokers it secured a credit line that will allow it to operate somewhat
normally……
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