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Is the flash crash of 1962 a flash crash?


Asked by Crosby Harris on Dec 03, 2021 FAQ



Not to be confused with Flash Crash of 1962. A flash crash is a very rapid, deep, and volatile fall in security prices occurring within an extremely short time period.
In fact,
This type of event occurred on May 6, 2010. A $4.1 billion trade on the New York Stock Exchange (NYSE) resulted in a loss to the Dow Jones Industrial Average of over 1,000 points and then a rise to approximately previous value, all over about fifteen minutes. The mechanism causing the event has been heavily researched and is in dispute.
Thereof, The Kennedy Slide of 1962, also known as the Flash Crash of 1962, is the term given to the stock market decline from December 1961 to June 1962 during the Presidential term of John F. Kennedy.
And,
High-frequency trading firms are said to be largely responsible for flash crashes in recent times. Regulatory authorities in the U.S. have taken rapid steps, such as installing circuit breakers and banning direct access to exchanges, to prevent flash crashes.
Additionally,
Notable flash crashes have occurred as of January 2019: May 6, 2010, Flash Crash. April 23, 2013, Flash Crash. Frankenshock, or Flash Crash Swiss Franc in January 15, 2015. Flash Crash of the British Pound on October 6, 2016.