Rumors can be dangerous.
A rumor circulated among investors this morning that UAL Corporation, parent of United Airlines, was going to file for bankruptcy. Shares (NASDAQ: UAUA) that had been trading around $12 all morning suddenly plunged to $8, through $7, past $3, and all the way down to 1 cent before trading was halted.
Trouble is, it seems that UAL Corporation did not and was not about to declare bankruptcy. The confusion originated from a four-year old article mistakenly posted as if it were current news.