No, You Can’t Buy Berkshire Stock at a 99% Discount

A man looking at a screen at the New York Stock Exchange
Michael Nagle/Xinhua via Getty Images

  • NYSE will cancel trades after glitch causes 40 stocks, including Berkshire Hathaway, to halt.
  • The glitch caused Berkshire Hathaway to appear to be trading at a 99% discount.
  • The technical problem lasted two hours and was related to Consolidated Tape Association software.

The New York stock exchange said it would reverse trades made after an issue caused trading to halt for 40 stocks Monday morning, including Berkshire Hathaway, which appeared to be trading at a 99% discount.

Warren Buffett Class A Stock The company appeared to be trading at $185.10 per share before trading halted. Trading can be halted before a news event, due to regulatory issues or if a stock falls out of certain price ranges, which is what happened to Berkshire Hathaway.

According to LSEG data, a handful of trades took place at a discounted price in the minute before the shutdown began. The NYSE said all Berkshire Hathaway trades made at or below $603,718.30 would be reversed.

The conglomerate’s Class A shares closed at $627,400 on Friday. The stock reopened at $648,000 at 11:36 a.m..m., and closed at $631,110 on Monday.

The technical glitch, which originated with real-time stock quotes from the Consolidated Tape Association, lasted about two hours and was resolved around 11:45 a.m.

The NYSE allows traders to report “clearly erroneous” trades and seek compensation, if necessary. Last January, a glitch on the NYSE caused dramatic price swings for more than 250 companies and was traced to a staff member who left a backup system running.

The CTA oversees the dissemination of real-time price information across multiple exchanges. He said Monday’s problem could have stemmed from an “issue with the Limit Up/Limit Down price bands that may have been related to a new software release.”

The NYSE has issued similar cancellation notices for at least 12 other companies, such as fast-casual chain Chipotle, and exchange-traded funds, including a Pimco bond ETF.

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Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe. Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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