Stock Market Ignoring Fundamentals - Accenture goes down to near Zero
One potential disadvantage of high frequency trading is they often ignore the fundamentals. For example, you can take the case of Accenture (NYSE:ACN). On last Thursday May 6, 2010, it went down to a penny from approximately 40.00$. How come a 28 billion dollar market capital company can become merely close to zero for a couple of minutes and then recovered to the same level. Of course, some of trades were cancelled as it does not make any sense.