Dow Jones Index Takes Massive Plunge, Retail Investors Rake In Profits

May 7th, 2010 - 7:09 pm ICT by GD  

By Ranjan Bhaduri
Dow JonesNew York, May 7, (THAINDIAN NEWS) Yesterday was a shocking day for the New York stock market veterans. They witnessed the Dow Jones Industrial Average taking a massive downslide quickly without any apparent reason. Since the Dow Jones is regarded as a leading stock index of the USA the incident created sensation in the stock market. The Dow Jones Industrial Average went down by a margin of almost 1000 points within just 2 hours. After this, the stock market veterans were busy trying to figure out what exactly led to this unexpected development. Some people thought it was relate to the monetary problems of Greece. However, that assumption turned out to be wrong and the error committed by a Citibank share market trader seems to be the reason behind it.

The stock market trader by mistake typed B indicating billions of shares instead of typing m, indicating millions of shares. That trader was most likely dealing with the stocks of 3M and Procter and Gamble. As these companies are listed in the Dow Jones stock market index their share prices plunged soon.

It has been announced that this incident will be probed thoroughly by the Securities and Exchange Commission. While the Dow Jones plunge made the stock market analyst worried a section of retail investors were too happy. They used the incident to their benefit. For instance, Vanguard Group Inc a large-scale provider of bond mutual funds and stocks went into trading overdrive. The MD of the company Tim Buckley, said that the company benefited from the Dow Jones plunge though he refused to say what amount of trading was done in that phase.

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