Three years ago, on May 6, 2010, U.S. capital markets experienced the “flash crash,” when the Dow Jones Industrial Average suffered a stunning 1,000-point loss (9%) in five minutes, followed by an equally dramatic recovery. It could happen again. Moments before the 2010 flash crash, individual stocks were trading at a greater than 90% discount to the price. Accenture PLC, for example, was quoted at $39 just prior to the flash crash, then had trades clear at $32.62, then $5.34, $4.04 and $1.84 before recovering to close at $41.09. The point decline in the Dow within a single day was the largest since the Dow debuted in 1896. More in Forbes here.
