Placeholder Image

字幕列表 影片播放

  • Market regulators are accusing a British national of almost single-handedly causing a "Flash Crash" to American stock markets in 2010.


  • During the incident, the Dow Jones Industrial average dropped about 6%, and lost more than $1 trillion dollars in mere minutes.


  • Fortunately, stocks rebounded relatively fast after the shock, but we wanted to know, what does it take to crash a stock market?


  • Well, there have been countless financial "crashes" throughout history.


  • They even go back to the 1600s when modern stock exchanges were first evolving among the trade economies of Europe.

    它們甚至可回溯至17世紀 ,當時現代證券交易所首次在歐洲貿易經濟體中發展起來。

  • A crash represents a steep, sudden decline in the value of market prices, and they can often lead to an economic depression.


  • The most devastating crashes are usually the result of an overly-inflated market, also known as a "bubble".


  • Investment bubbles occur when prices of market shares are driven upwards past their real value.


  • According to some market theorists, a bubble is encouraged by a "herd mentality" ,


  • where people first jump on the bandwagon of a profitable stock, and then, when the bubble bursts, they engage in panic-selling.


  • The most famous example of this was during the 1929 American Stock Market Crash.


  • Before then, post World War I America experienced an economic boom,


  • optimism in the economy inspired many take on risky loans, and invest in stocks.


  • But when the economy slowed down people began to sell their shares - at first slowly, and then in droves.


  • Market prices went into freefall, and there were no fail-safe rules to stop the inevitable crash.


  • Stock markets can also be "spooked" into a decline or a crash following catastrophic events.


  • For example, San Francisco’s massive 1906 earthquake is thought to have played an integral role in the financial panic of 1907.


  • During that time, the market sank to about 50% of the previous year’s valuation.

    那時股市市值下跌至去年估值的 50% 左右。

  • Additionally, In 2001, after the September 11th terrorist attacks, the stock markets were closed for almost a week.

    此外,2001年9 / 11恐怖襲擊後,股票市場關閉了近一周。

  • In the first five days back, the markets faced a loss of about $1.4 trillion dollars.

    前五天,市場面臨約 1.4 兆美元的損失。

  • The digital era has also introduced new threats to the stock market in the form of "high frequency trading".


  • HFT is when thousands of trades are carried out by computers in fractions of a second.


  • The swiftness of computer programs at buying and selling puts traditional traders at a disadvantage.


  • Also, the use of HFT creates a lot of potential volatility in the stock market.


  • Computer programs that are designed to automatically respond to price points can trigger mass selling before anyone can notice.


  • This contributed to the 2010 Flash Crash, after a large enough downtick in stocks caused many HFT programs to further withdraw, leading to a drastic crash.

    這導致了2010年的「閃電崩盤」,由於低價交易( downtick)大量湧現令許多「高頻交易」程式賣出股票,導致了劇烈的崩盤。

  • After that particular event, government regulators imposed new laws, called "circuit breakers",


  • that temporarily "pause" trading if a stock falls 10% or more within a 5-min period.

    如果股票在5分鐘內下跌10%或以上, 所有交易便暫時「停止」。

  • These safeguards give traders breathing room to reexamine their options instead of panicking and selling everything before the stock bottoms out.


  • The Securities and Exchange Commission works hard to regulate the wild swings of the stock market.


  • But for the modern era, stock markets remain more volatile, and susceptible to crashes than anyone might ever think.


  • Investing is a pretty risky thing to do, but sometimes big risks can have even bigger rewards.


  • To learn why Africa is such a hotspot for foreign investment right now, check out our video here.


  • Don’t forget to subscribe, and thanks as always for hanging out with us here on TestTube!


Market regulators are accusing a British national of almost single-handedly causing a "Flash Crash" to American stock markets in 2010.



單字即點即查 點擊單字可以查詢單字解釋