What Is A Stock Market Crash?

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The United Kingdom recently arrested a man for allegedly causing the stock markets to crash in 2010. We wanted to know, what does it take to crash a stock market?

Learn More:

‘Flash Crash’ Charges Filed
http://www.wsj.com/articles/u-k-man-arrested-on-charges-tied-to-may-2010-flash-crash-1429636758
“A trader who operated out of his West London home was arrested by British authorities Tuesday on U.S. charges that he helped cause the Dow Jones Industrial Average to plummet 1,000 points on May 6, 2010, in what came to be known as the ‘flash crash.'”

Findings Regarding The Market Events Of May 6, 2010
http://www.sec.gov/news/studies/2010/marketevents-report.pdf
“On May 6, 2010, the prices of many U.S.-based equity products experienced an extraordinarily rapid decline and recovery.”

The Economic Effects of 9/11: A Retrospective Assessment
http://fas.org/irp/crs/RL31617.pdf
“The tragedy of September 11, 2001 was so sudden and devastating that it may be difficult at this point in time to write dispassionately and objectively about its effects on the U.S. economy.”

Watch More:

Why the US and China are Investing in Africa
https://www.youtube.com/watch?v=lq0bKvEg560&list=UUgRvm1yLFoaQKhmaTqXk9SA&index=303

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Comments

Annie Fitzsimmons says:

Please explain to the viewer as if this is the first time they are looking at "what the stock market is" What happens to the trillion dollars after a crash. Is it just gone? Has that money just gone into thin air? Y do people put money in a stock market if they stand a big chance to lose everything? What does a crash do to the world economy?

GlobalMacro says:

well it's more like rebooting the exchange server rather than brokers reexamine the situation… S&T people don't really know jackshit

Rdsxfn17 says:

To be fair, it isn't a single persons fault.  He could have been a huge contributor, but he is basically a scapegoat.

The computer programs usually run the trades, and once they hit a certain point it can trigger a buy/sell order, and it snowballs.

That is likely what happened.  But one person isn't singlehandedly responsible for that.

mannlord mode says:

how powerful is my computer?

YUSoDumb1 says:

When a new case is released in csgo

Sonic Singularity says:

PANIC SELL WANDS

Luke William says:

I see Jim but where is Pam?

nj4ck says:

This is why we need a tax on HFT to prevent reckless trading and the formation of bubbles that lead to crashes.

rohith kumar says:

Is China's foray into Indian ocean political or economical

nrkgalt says:

If you think a stock will drop significantly, buy put options on it. 

Alexandre Boucher says:

I still don't quite understand what is the stock market.

Benny Chenley says:

Japan's economy is always going up down up down up down up and drop down

Mohamed ElMobark kibida says:

baubles are created just as well, example the 1920's

John McCallister says:

Where will you go when you die?
Not your body, you, the person, your spirit. There is a life after death, and you will spend it either in Heaven or hell, and where you go all comes down to one thing. One choice.  Will you make Jesus Lord of your life.
Salvation comes only through Him.  He's the only way to a relationship with God.  You can have that by praying something like "Jesus, I believe you are the Son of God, that You died on the cross for me and then rose from the dead. I repent of my sins.  Come into my life, change me and help me to live for you."
You should read you Bible and ask God to help you understand it and how to apply it to everyday life.
Go to a church whose teachings line up with the Bible

Gaming champ says:

Lol that guy was really smart Indian he made million by crashing stock market. 

DontFuckWitDreDay says:

How powerful is Steam Market? 
[Please do a video on it! People apparently make money on PC gaming…]

sidney chalamila says:

That's where we are heading….one man having the capabilities of bringing the economy of a single nation to a halt, all by himself!!

Ali R says:

Today 80% of the stock exchange are done by computers.

Chris Sanchez says:

You never actually explained what the british national did to cause the flash crash. What happened?

Nguroa says:

It might be a good idea to explain what a 'stock market' is before you try to explain the crash. 
This is peoples lives we're talking about but it sounds like gambling, oh wait, it's the same thing.

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