David Miller, a stock trader has tried to illegally purchase 1.625 million shares worth of $1 billion of Apple stock with the securities of Rochdale, on the quarterly earning October released of Apple. He has done it purposely, as his aim was to quickly sell off all the stock soon after rising of prices, as reported by Apple in his quarter earnings of October and return the firm’s amount. But it could not happen.
Instead of rising, Apple stock has face dropped off shown in the later reports. After hours, stock of Apple has fallen down and opened at lower. This is based on the verity that Apple has basically missed out street estimates in comparing the usual trend of opening higher soon after an earning call. The same trend has been followed for 25 years and in the past 36 quarters, according to the MarketWatch.As the stock prices shot down due to changing in trend, Miller has to face prison for the next 20 years. On his caught he said that he was only aiming to buy 1,625 share but multiples somehow went too much larger 1.625 million share buying. On the other side, Rochdale is save and he has to just bear loose of $5 million because deal went wrong and is now looking for the rescue from cash investment or mergers. His losses are more than it can cover while remaining solvent.
Similarly, Miller also tried to involve other brokers to work with the same scheme, but his misfortune does not help him in selling 500,000 shares. This story has left huge lesson for everyone. It is not really wise to invest employer’s money in playing blind games, as sometimes trends can get opposite.
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