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- Li Dongsheng, chairman and founder of TCL Technology Group had to buy back 5 million shares of his own company’s stock due to a fat finger error by one of his traders.
- Li said the trader erroneously sold them.
- The shares were sold at 1:03 pm on Tuesday and Li had to buy them back 2 hours later.
- Li said he will donate $44,000 back to the company.
- The fat finger episode comes alongside the company’s stock surging in recent days. The stock is up 27% in the last month.
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The chairman of Chinese electronics company TCL Technology Group said Tuesday a trader erroneously sold 5 million shares from his account in a classic fat-finger mistake.
A security filing Tuesday showed chairman and founder Li Dongsheng sold five million shares on Tuesday afternoon. The sale took place at 1:03 pm. He bought them back only two hours later for roughly worth $5.2 million, raking in $21,000, the Wall Street Journal reported Tuesday.
Li said a trader had earlier input an incorrect stock ticker. “Fat-finger” trades are the result of human error in hitting a wrong key on a keyboard. Sometimes, their market impact can be massive.
Li said he would donate $44,000 back to the company, which makes LCD panels for television screens.
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The chairman and founder apologized to his shareholders on Weibo and said it was his own decision to re-purchase the stock.
The fat finger episode comes at a time when the company’s shares have surged in recent months. The stock is up 50% since the start of the year and 27% in the last month alone.
The stock was hovering around $0.74 as of 6:40 am. ET.
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