By Dongliang
“Larry” Yi
Background
The 2010 Flash Crash was a US stock
market crash, which started at 2:32 pm, May 6th EDT and lasted for approximately
36 minutes. The Dow Jones Industrial Average experienced its largest intraday
point drop, plunging 998.5 points (about 9%) from the opening, most within
minutes, only to recover a large part of the loss[1]. Other stock
indexes, such as S&P 500, Russell 3000 and Nasdaq Composite, also collapsed
and rebounded very quickly. This market crash immediately caused
trillion-dollar market loss, and recovered most of the value at the close. Some
blue-chip stocks, like Procter & Gamble, traded as low as $0.01[2],
but closed at $60.75.
