Flash Crash

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Dictionary Says

Definition of 'Flash Crash'

The quick drop and recovery in securities prices that occurred shortly after 2:30pm Eastern Standard Time on May 6, 2010. Initial reports that the crash was caused by a mistyped order proved to be erroneous, and the causes of the flash crash remain unknown. Both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have investigated the incident.
Investopedia Says

Investopedia explains 'Flash Crash'

The SEC and CFTC released a preliminary report on the flash crash incident on May 18, 2010. The report gave several working hypotheses, but failed to identify a single cause for the incident. Securities exchanges canceled 21,000 trades that were executed at unexpectedly low prices during the crash. On June 10, 2010, the SEC voted unanimously to enact new rules which automatically stop trading for any stock in the S&P 500 whose price changes by more than 10% in any five-minute period.
Search results for

'Flash Crash'

  • Did ETFs Cause The Flash Crash?

    http://www.investopedia.com/articles/exchangetradedfunds/11/ets-flash-crash.asp
    Did ETFs Cause The Flash Crash? ... The liquidity hurt during the flash crash. While
    ETF investors took a wild ride, mutual fund investors did not. ...

  • The Scariest Days On Wall Street - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1011/The-Scariest-Days-On-Wall-Street.aspx
    ... The Flash Crash On May 6, 2010 the market started off having another bad day, amidst
    the worries about the Greek financial crisis and the potential follow-on ...

  • Understanding Liquidity Risk

    http://www.investopedia.com/articles/trading/11/understanding-liquidity-risk.asp
    ... High trading volume does not necessarily imply high liquidity. The Flash Crash
    of May 6, 2010 proved this with painful, concrete examples. ...

  • Key Reasons To Invest In Real Estate

    http://www.investopedia.com/articles/mortgages-real-estate/11/key-reasons-invest-real-estate.asp
    ... A good example of this would be the "Flash Crash" of May 2010, when $1 trillion
    in stock market value was erased in just 15 minutes. ...

  • The Stock Market: Winners And Losers - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/The-Stock-Market-Winners-And-Losers.aspx
    ... This may keep the price of oil at uncharacteristically low levels for a while.
    (For past causes of market decreases, read What Caused The Flash Crash?). ...

  • 5 Dumb Things Investors Do With Their Money - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0112/5-Dumb-Things-Investors-Do-With-Their-Money.aspx
    ... Major inflection points in the market are missed by the best investors and include
    the credit crisis, flash crash and latest concerns over sovereign debt ...

  • The Risks Of Investing In Emerging Markets

    http://www.investopedia.com/articles/basics/11/risks-investing-in-emerging-markets.asp
    ... in the news, corporate bonds are frequently downgraded, accounting fraud is often
    revealed and market imperfections such as the flash crash continuously bring ...

  • ETFs Causing Volatility? Here's The Real Problem

    http://stocks.investopedia.com/stock-analysis/2010/ETFs-Causing-Volatility-Heres-The-Real-Problem-IJH-MDY-XOM-CREE-SPY-IVV0917.aspx
    ... Now, in the shadow of the June 22 "flash crash" - for which ETFs took at least some
    of the blame - one has to wonder if heavy institutional ownership is a ...

  • Water Cooler Finance: Crying Over Spilled Oil, And Buffett Goes To ...

    http://financialedge.investopedia.com/financial-edge/0510/Water-Cooler-Finance-Crying-Over-Spilled-Oil-And-Buffett-Goes-To-Court.aspx
    ... month. This move was largely due to the European crisis, the so-called "flash
    crash" and a steep decline in crude oil prices. However ...

  • The Best And Worst Investing Advice

    http://www.investopedia.com/articles/financial-theory/10/best-worst-investing-advice.asp
    ... cash". The flash crash serves as a stark reminder to investors about the
    need to truly understanding their portfolios. (Find out ...

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