Market history · 01
Accenture's bids fell from $30 to 1 cent in 7 seconds
Accenture · May 6, 2010
- Bids before
- ~$30
- 7 seconds later
- 1¢
- Trades cancelled
- > 60% from the 2:40 p.m. price
- After
- SEC-approved rules effectively prohibit stub quotes
"A market order takes the best price available."
▶ Watch the ShortWhat it taught me
On May 6, 2010, the bids for Accenture fell from about $30 to 1 cent in 7 seconds, after market makers pulled their real bids and left stub quotes. A market order takes the best price available, so if the only bid left is a stub quote, that is the price the order gets.
The exchanges later cancelled trades more than 60% away from the 2:40 p.m. price, and the SEC approved rules that effectively prohibit stub quotes.
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