Knight Capital reportedly gets lifeline for the day
Knight Capital reportedly got a lifeline to let it keep operating for the day.
Knight, a major stock brokerage based in Jersey City, N.J., got a much-needed credit line to continue operating for the day, according to the Wall Street Journal.
Knight has faced the prospect of collapse since it lost $440 million because of a trading software glitch. The amount it lost was nearly four times its profits for all of last year.
Wall Street has punished the stock. It has lost about 70% of its value this week.
But in early trading on Friday, Knight’s shares gained 61 cents, or 24%, to $3.19 a share.
Since the Wednesday trading loss, Knight has been looking for rescue financing or a buyer.
A Knight spokeswoman did not immediately respond to a request for comment Friday morning.
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