Confused investors boost valueless stock

Dormant stocks of a U.S. company that went belly up in 2009 got a brief jolt thanks to a case of mistaken identity, reports the New York Times’ DealBook.

Read: IPO fever boosts the wrong stock

Nestor Inc.’s previously worthless stock saw a flurry of activity when confused investors bought it up on news of Google’s acquisition of Nest Labs. Nestor’s stock ticker, NEST, was the culprit, notes the report, adding that Nest Labs is a private company.

“This isn’t the first time that a big deal on Wall Street has reverberated in the shadowy world of penny stocks. In October, after Twitter filed to go public, shares of Tweeter Home Entertainment — a defunct home entertainment retailer whose stock had barely traded — surged as much as 685% before trading was halted,” the report explains.

Read more here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.