On Monday, a 2002 story about United Airlines’ bankruptcy appeared on a Florida newspaper’s “most viewed” list of articles, triggering a series of events that drove the company’s stock price from $12.50 to $3 before trading was suspended. By the end of trading, the stock had risen to $10.60, a 2.8% loss for the day. This Google Finance chart shows how United’s stock moved in comparison to the major indices, all of which were quiet by recent standards. All because of automation. Check out the story, it’s an interesting one.
Source: “UAL Story Blame is Placed on Computer,” The Wall Street Journal, September 10, 2008.