This insufficient liquidity have had significant effect on

Feb 15

However, negative news to investors about the liquidity of stock, option and futures markets cannot explain why so many people decided to sell stock at the same time. Two economists from the Securities and Exchange Commission, Mark Mitchell and Jeffry Netter, published study in concluding that the antitakeover legislation did trigger the crash. Many common stocks in the New York Stock Exchange were not traded until late in the morning of because the specialists could not find enough buyers to purchase the amount of liquidity.

Many common stocks in the New York Stock Exchange were not traded until late in the morning of because the specialists could not find enough buyers to purchase the amount of liquidity. Between 13, when the legislation was first introduced, and 16, when the market closed for the weekend, stock prices fell more than percent the largest 3day drop in almost years. However, negative news to investors about the liquidity of stock, option and futures markets cannot explain why so many people decided to sell stock at the same time.

Between 13, when the legislation was first introduced, and 16, when the market closed for the weekend, stock prices fell more than percent the largest 3day drop in almost years. Many common stocks in the New York Stock Exchange were not traded until late in the morning of because the specialists could not find enough buyers to purchase the amount of liquidity. They note that as the legislation began to move through Congress, the market reacted almost instantaneously to news of its progress.

It took only two years for the Dow to recover completely by of the market had regained all of the value it had lost in the 87 crash. 2During the Crash, trading mechanisms in financial markets were not able to deal with such large flow of sell orders. As result, trading was terminated in many listed stocks. Many common stocks in the New York Stock Exchange were not traded until late in the morning of because the specialists could not find enough buyers to purchase the amount of liquidity.