South Korea’s Samsung Securities Co. on Wednesday offered to indemnify for its major fat-finger mess-up by paying stock sale made last Friday at the intraday-high price.
The redemption applies to any retail investors who sold their holdings in Samsung Securities during the day after the first employee of the brokerage house placed an order at 9:35 a.m. Friday to sell corporate shares that had been distributed to their accounts instead of cash dividends through computer error.
The stock had swung 12 percent during the day upon reports that employees were dumping treasury shares that had been misplaced, falling to as low as 35,150 won. The brokerage house, whose blunder invited intensive probe on its trading practices as well as employees from regulatory authorities, offered to compensate for any losses below the intraday high of 39,800 won. It will also pay for the trade commission plus tax.
The stock has lost 11 percent since Friday. Shares rose after the compensation program was announced. Shares of Samsung Securities closed Thursday up 0.71 percent at 35,700 won.
“We will provide all possible relief actions so that no one is left out,” said Koo Sung-hoon, its chief executive. Nearly 600 investors registered by midday on the first day of relief.
By Han Ye-kyung and Lee Ha-yeon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]