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J-COM: Share-Trade Irregularities on the Day of IPO  
Product Ref: 08/378C Company: J-COM

Product Type: Case Industry: Consumer Goods

Related Product(s): Teaching Note
Authors: Mitsuru Misawa   
8 December 2005 was a very special day for J-Com Co. Ltd's ("J-Com") as this was the day the company would be listed on the Tokyo Stock Exchange ("TSE"). However, when a sell order for more than 40 times the firm's outstanding shares was placed by Mizuho Securities ("Mizuho Sec") the exchange was thrown into turmoil. Before the end of the day, Mizuho Sec suffered losses of at least óD27 billion following an input order for the sale of one share for óD610,000 which was accidentally entered as 610,000 shares for óD1 each.

What steps should J-Com president, Yasuhiko Okamoto, take in light of the events? How should the TSE, Mizuho sec and the other brokerages react? The real crux of this case is managerial decision making and the value of good leadership when something unexpected happens.
Functional Area : Finance & Investments

Issues: managerial decision making and the value of good leadership when something unexpected happens, risk of human error and technical glitches at stock exchanges
Length: Text: 12 pages
Exhibits: 1 pages
Country: Japan

Pub. Year: 2008 Level of Difficulty: 2
This product type is available in the following language(s):      English
Related Information: N/A
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