Banking, finance, and taxes
Knight Capital Gets Confidence Booster, Shares Up 60%
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Source: Photo by Spencer Platt/Getty Images
Earlier today The Wall Street Journal reported that the company had received a credit line that would allow it to operate for the day, and that boosted the stock nearly halfway to its 60% gain. But there’s little doubt that without TD Ameritrade’s vote of confidence the share price would have stalled out at a much lower level.
Scottrade has also resumed trading with Knight, although E*Trade Financial Corp. (NASDAQ: ETFC), Vangaurd, and Fidelity have not. Knight said yesterday that it estimated its cost from the errors at $440 million, which we noted this morning is about 4x the company’s annual net income.
Knight’s shares are now trading at $4.13 in a 52-week range of $2.27-$14.00. Shares closed at $2.58 last night.
Paul Ausick
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