Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.
What Happened?
On this day 26 years ago, Comparator Systems stock gained 3,025% and set a new record for single-day Nasdaq trading volume.
Where The Market Was
The Dow finished the day at 5,475.14. The S&P 500 traded at around 645.44. Today, the Dow is trading at 32,899 and the S&P 500 is trading at 4,123.34.
What Else Was Going On In The World?
In 1996, Major League Soccer debuted in the U.S. In Japan, NINTENDO Ltd/ADR (OTC:NTDOY) released the Nintendo 64 gaming console. The average American earned $36,300 annually.
The Rise, Fall Of Comparator Systems
Comparator’s infamous trading day included a lot of noteworthy numbers. The fingerprint ID company with less than $2 million in assets started the day at a share price of 6 cents. But 177 million shares of the stock were traded on May 9, 1996, sending Comparator’s share price soaring more than 3,000% to $1.875 and pushing its market cap above $1 billion.
Not only did Comparator set a new record for daily trading volume, it more than doubled the previous record. In addition, Comparator single-handedly accounted for 21.1% of the Nasdaq’s record 804-million total trading volume that day.
The SEC eventually halted the stock to investigate Comparator and ultimately charged the company with fraud. Roughly a month after its record day, Comparator stock was delisted from the Nasdaq.
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