Are You Ready For Another “Flash Crash?”

Investors have plenty of reasons to be skittish.

The “flash crash” in May demonstrated that the stock market doesn’t always behave the way it’s supposed to.  Human error, deliberate manipulation and technology can all be factors in preventing the market from being as efficient as it’s supposed to be.

The latest case of market mayhem resulted when a system upgrade at Arca, NYSE Euronext’s electronic stock market, triggered what appeared to be a 9.6% drop in the price of SPDRs, the popular exchange-traded fund that tracks the S&P 500 index. read more

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