Mizuho Securities Lost $225 Million When

question 13

Multiple Choice

Mizuho Securities lost $225 million when

• A) hackers broke into its trading system and raided the accounts of 10,000 of its most important customers.
• B) a bug in its billing system caused it to send out improper invoices to 10,000 of its most important customers.
• C) a bug in its currency trading system caused it to sell yen and purchase dollars when it should have purchased yen and sold dollars.
• D) it tried unsuccessfully to automate the Tokyo Stock Exchange.
• E) one of its employees mistyped a sell order, and a bug in the Tokyo Stock Exchange trading program made it impossible to cancel the order.

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Definitions:

Coupled With An Interest

A right or benefit that cannot be taken away because it is legally attached to another property or contractual right.

Agency Agreement

A legal contract creating a fiduciary relationship wherein the first party ("the principal") agrees that the actions of a second party ("the agent") binds the principal to later agreements made by the agent as if the principal had himself personally made the later agreements.

Writing

A method of recording language through the inscription or recording of signs and symbols.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another. The party in a fiduciary relationship is usually referred to as the fiduciary, while the other is the principal or beneficiary.