Greed and stupidity. You don't want your stock picks to fall into either category!
Yesterday it was announced that FaceBook bought a company called Oculus Rift for $2 billion dollars. While the investing world was busy debating whether that was a smart move, some investors were busy Wednesday morning trying to make a quick buck by buying what they thought was that same Oculus company. What they really bought though, were stocks of other companies totally unrelated and in doing so they lost money, as they should.
First of all, it is and was impossible to buy stock in Oculus Rift because it not a public company and there are no shares to buy! So, anyone who tried to make money this morning by purchasing any stock with the "Oculus" name was uninformed and really shouldn't be investing in stocks until they educate themselves.
Oculus VisionTech Inc. (OVTZ) is one of the companies that saw their stock soar just because they had the "Oculus" word in their name. The stock opened at 18 cents a share and went all the way up to over 35 cents a share before people realized they had made a mistake. The stock even had to be halted for over an hour and as I write this the stock now sits at just 14 cents a share which is back down to where it should be. People who bought OVTZ at the frenzied opening lost a lot!
Oculus Innovative Sciences, Inc. (OCLS) is the other stock that saw some quick uniformed buying before coming back to earth. The stock closed the night before at $4.54 and got all the way up to $5.20 in early trading before the error was noticed. That is about an 8% pop all because people were buying the wrong stock.