These common spelling mistakes cost investors millions each year

Discussion in 'Wall St. News' started by dealmaker, Aug 23, 2019.

  1. dealmaker


    These common spelling mistakes cost investors millions each year
    Automotive behemoth Ford Motor will release it’s Q3 earnings on October 24th, and when it does, countless investors will scramble to purchase shares of stock ticker “FORD.”

    Only one problem…

    “This is not the FORDyou’re looking for”
    “FORD” is the ticker symbol for “Forward Industries,” a manufacturer of “carrying cases for medical monitoring systems” worth $10m -- not the$40B car companylisted under ticker symbol (F).

    And we thought the newsletter industry was niche…

    In fact,experts estimatethat this mistake costs investors an average $1m in trading fees alone. Most investors don’t even catch the mistake until at least a week later, and some never correct it at all, “they just rationalized the purchase as still being a good investment,”one researcher writes.

    Other notable ticker travesties:
    • HP vs. HPE: “HP” stands forHelmerich & Payne, a drilling rig company, not Hewlett Packard (which trades under “HPQ”), or Hewlett Packard Enterprises, which trades under “HPE.”
    • ZOOM vs. ZM: “ZOOM” is an obscure Chinese wireless company.“ZM”is a $25B video conferencing platform.
    • TWRTQ vs. TWTR: “TWTRQ” is a bankrupt home entertainment retailer whose stockspiked1000% in 2013 after Twitter IPO’d under ticker symbol “TWTR.”
    This is just the short list -- Professors at Rutgers identified “250 company pairs where the possibility of confusion is particularly high.”

    Even “robo investors” make mistakes
    Big institutions that rely on algorithms to watch for big movements in stocks often get tripped up when a bunch of poor proofreaders dump money into the wrong companies.

    Computers don’t askwhya bunch of investors are suddenly optimistic about a defunct stereo seller, they just execute. That means the responsibility falls on investors to “spellcheck” their holdings, whether they’re a basement daytrader, or a hedge fund hotshot.
  2. Overnight


    I dunno' why, but articles like this have a "feel-good movie of the summer" vibe.
  3. Sheesh anybody who makes these kinds of mistakes doesn't deserve to have money...
  4. wrbtrader


    Hilarious :D

    I wonder if there's a study that determines the age group making such mistakes with the ticker symbols. I'll bet the elderly and/or retired group making a large percentage of the ticker symbol mistakes.

  5. Nobert



    When retired people, watch entire season of Billions in one day.
    wrbtrader likes this.
  6. d08


    I wonder how arbed this edge is.