Market #FAIL: Eager investors appear to mix up ‘Tweeter’ with ‘Twitter’
A long-bankrupt electronics retailer saw a sudden revival in the stock market on Friday after some investors confused the defunct company with the social networking service Twitter.
Twitter expects to raise about $1 billion in its IPO.
Tweeter Home Entertainment group went bankrupt in 2007, but its stock price skyrocketed more than 1,400 percent yesterday before the Financial Industry Regulatory Authority shut down trades, citing a misunderstanding related to a “possible initial public offering of an unrelated security.”
The bankrupt company traded under the symbol TWTRQ- which should have been a red flag to investors. The “Q” is added to a company’s ticker symbol when the company is going through bankruptcy proceedings.
Twitter has been working towards an initial public offering, but you can’t buy shares of the social media giant just yet.
For more on the social media giant’s IPO filing, Zach Seward of Quartz joined NewsHour last night to discuss Twitter’s plan to offer shares.