“Garbage” shares of Nestor company increased 50 times (thanks, Google!)

Nestor Inc. - a small American company (89 employees), which develops automated systems for monitoring compliance with traffic rules and sells them to government agencies. It would seem, why did the shares of this company grow 50 times in one day? What can happen to the rules of the road?



Casket opens simply. The fact is that the company's stock ticker is NEST . Thousands of investors rushed to buy the securities of this company, as soon as January 14 there was news about the purchase of Nest Labs, Inc. by Google for $ 3.2 billion.



Nestor shares are among the so-called "junk" shares, which are sold for a fraction of a cent. The graph shows that until January 14, shares of Nestor Inc. sold for about 0.2 cents, and on January 14 jumped to 10 cents. That is, in peak growth was about 5000%.





')

The madness continues still, although the quotes have declined slightly. For the moment of writing this text the stock price of Nestor Inc. is 3.89 cents, which is also ten times higher than at the beginning of the week. Moreover, the volume of trading is so large that idiocy is clearly massive.



How can we talk about the dangers of algorithmic trading? It seems that people need to be kept a mile from the trading terminals.



PS But someone earned made a commission of 50% on these transactions.