5 Oct 2013

Twit traders mistake boosts Tweeter stock

3:36 pm on 5 October 2013

The share price of Tweeter, a formerly insolvent home-electronics retailer, has rallied an eye-popping 2200% after US traders apparently mistook it for Twitter.

Tweeter's stock, which was below 1 penny, peaked at 15 US cents after social-media company Twitter released its prospectus in advance of a much-anticipated initial public offering (IPO) of its stock.

The similarity of the companies' ticker symbols apparently contributed to the mistake.

While Twitter will use the symbol TWTR after its IPO, Tweeter uses TWTRQ.

Tweeter trading was suspended under a rule that applies to stocks traded over the counter.

Twitter plans to begin selling stock soon in hopes of raising $US1 billion. Its prospectus claims the value of the company is $US12.8 billion.

The IPO is expected to take place in November.