The New York Stock Exchange halted trading in shares of Waddell & Reed Financial for more than two hours Friday after shares had shot up more than 8 percent.
The market was reacting to incorrect information about the mutual fund company’s outflows of investors’ dollars and the exchange stopped trading.
Waddell & Reed corrected the information, which it said had come from a third party, by releasing a statement about its outflows during April and May.
Shares had traded as high as $19.11 before the trading halt. It was their highest trading price since January.
Trading in the company’s stock resumed after more than 2 hours and prices immediately shed much of their sharp morning gains.
Shares fell to $17.73 and then rebounded to a closing price of $18.17, up 51 cents from Thursday’s close at $17.63.
Waddell & Reed’s statement said it had seen $1.4 billion in investor outflows in April and an additional $500 million in May. Its total assets under management conversely benefited by increases in the stock market those months.
Its total assets under management declined to $80.9 billion at the end of May from $81.1 billion at the end of March.
As of Thursday, however, Waddell & Reed had $81.5 billion under management, up 0.5 percent from the March total, the announcement said.
The company has been dealing with a general outflow of investors’ dollars in the face of increasing investor preference for passive investment funds and other issues.