On Monday (June 3rd) Eastern Time, the New York Stock Exchange stated that the issue that had previously caused some stock prices to show anomalies has been resolved and is currently under investigation. The New York Stock Exchange announced that it will eliminate all erroneous trades by Berkshire Hathaway and invalidate trades that buy Buffett's stock at a low price.
In addition, the New York Stock Exchange stated that it will clear ties with the Bank of Montreal, Mexican style barbecue Direxion Daily Aerospace&Defense Bull 3X、 Barrick Gold and NuScale Power related erroneous trades.
On the evening of June 3rd Beijing time, multiple market software showed that several US stocks were suspected of experiencing abnormal market conditions. Stocks such as Berkshire, Bank of Montreal, and Barrick Gold plummeted by over 98%, and the market remained stagnant. Among them, the A-share price of Berkshire Hathaway, led by Buffett, plummeted 99.97% to $185.1.
Subsequently, the New York Stock Exchange stated that it was investigating technical issues that had arisen, and several stocks were suspended due to significant fluctuations.
As of Monday's close, Berkshire Hathaway A-shares rose 0.59% to $631110.1 per share, while Berkshire Hathaway B-shares rose 0.09% to $414.79 per share.
It is reported that the New York Stock Exchange, along with other unlisted trading privileges (UTP) exchanges, has ruled to revoke all erroneous trades related to CTA SIP issues involving Berkshire Hathaway priced at $603718.30 or less between 9:50-9:51 AM Eastern Time.
The reason why Berkshire Hathaway's A-share price is so high is mainly because Buffett has never split the stock because he wants to attract shareholders with long-term investment vision. Buffett has stated that many Berkshire shareholders treat their stocks as savings accounts.
According to FactSet data, Buffett is Berkshire's largest shareholder, owning over 38% of Class A shares. Buffett has been managing Berkshire since 1965 and has promised to donate the wealth he has accumulated at the company.
Recently, the US stock market has experienced frequent malfunctions. Just last week, on May 30th local time, there was an issue with the real-time pricing of the S&P index, with the S&P 500 index and Dow Jones index experiencing a halt since 10:41 New York time on that day. At that time, the S&P index website announced that it was undergoing maintenance. The Chicago Mercantile Exchange (CME) has confirmed that it is currently unable to generate index quotes and is working to address the issue.
According to official information released by the New York Stock Exchange, the exchange has experienced six varying degrees of trading failures this year alone, involving multiple varieties such as stocks and options.