Investors sent shares in a little known startup called SNAP Interactive Inc., ticker STVI, surging 164 percent in the four days since Snap Inc. filed for a $3 billion initial public offering. What is wrong with this?
1. What industry is SNAP in?
2. Why is it thought that this is a case of mistaken identity?
3. Is mistaken identity of tickers in equity markets a common occurence?
4. How would you suggest that this be avoided? Be creative in your answers.
Renick, O. (2017) Mistaken Identity Sends Snap Sound-Alike Up 140% After IPO News. Bloomberg, Feb. 8 (Retrievable online at https://www.bloomberg.com/news/articles/2017-02-08/mistaken-identity-sends-snap-sound-alike-up-140-after-ipo-news)