At close on Tuesday night Goldman stocks were at $133 as they announced a 70% drop in earnings but as the opening bell rang on Wednesday morning they fell to $118.
At midday they dropped to $99 only to close at $106.
The topsy turvy ride has continued into today as has market speculation about the future of the investment bank with shares rising as high as $114 and falling to $104.50.
Unlike other American investment firms the majority of shares are still held by staff and former employees with 48% sitting with current Goldman partners.
Market speculation is thought to have driven much of the this week’s instability in share prices as markets try to predict what mergers will take place and when.
John Mack, chief executive of Morgan Stanley, says the troubles plaguing his firm’s share prices are driven by rumours and short selling.
Short selling is a legal but dubious practice whereby shareholders attempt to destabilise share prices so they can make profits off of dropping shares.
Mack says:”What’s happening out there? It’s very clear to me – we’re in the midst of a market controlled by fear and rumours and short-sellers are driving our stock down.”
Shares in Morgan Stanley fell from $28.70 on Tuesday night to its current $20. This marks a 50% drop from 10 days ago when Morgan Stanley’s shares were bought and sold for $43.27.