UPDATE: Crash in American Electric Power (AEP) & NextEra Energy (NEE) Adds to Jitters
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(Updated - May 23, 2013 3:56 PM EDT)
Investors watched in horror this morning as shares of American Electric Power Co (NYSE: AEP) crashed 54% on the open. NextEra Energy (NYSE: NEE) was also affected. Its stock dropped 62%. Both stock later recovered and traded down by only a few percent.
The crash resulted from an order imbalance. Importantly, trades were not subject to limit up/ limit down rules because trades took place before 9:45, when restrictions begin. In August new rules will expand limit up/ limit down for the full day, but as of now those rules do not exist.
The crash added to jitters, creating an uncomfortable vibe as investors looked across the Pacific to Japan's battered stock market.
Update: This afternoon the NYSE said trades between 9:30 and 9:31 are still valid trades and will stand. The trades will be marked with an Aberrant Report Indicator and will be excluded from high and low data. AEP traded as low as $22.28. NEE traded down to $30.37.
Investors watched in horror this morning as shares of American Electric Power Co (NYSE: AEP) crashed 54% on the open. NextEra Energy (NYSE: NEE) was also affected. Its stock dropped 62%. Both stock later recovered and traded down by only a few percent.
The crash resulted from an order imbalance. Importantly, trades were not subject to limit up/ limit down rules because trades took place before 9:45, when restrictions begin. In August new rules will expand limit up/ limit down for the full day, but as of now those rules do not exist.
The crash added to jitters, creating an uncomfortable vibe as investors looked across the Pacific to Japan's battered stock market.
Update: This afternoon the NYSE said trades between 9:30 and 9:31 are still valid trades and will stand. The trades will be marked with an Aberrant Report Indicator and will be excluded from high and low data. AEP traded as low as $22.28. NEE traded down to $30.37.
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