Economics
Knight Bruised in Haywire Day as Loss Reaches $440 Million
This article is for subscribers only.
The latest black eye for U.S. equity markets is proving a body blow for Knight Capital Group Inc.
Shares of the Jersey City, New Jersey-based firm plunged 33 percent, the most ever, in record volume yesterday as investors speculated on how much a breakdown that whipsawed owners of 140 stocks will cost the company. Knight said losses from the errors are $440 million, more than some analysts had estimated, and the firm is exploring strategic and financial alternatives, according to a statement today. Its stock plunged a further 58 percent to $2.85 in early trading today.