Please ensure Javascript is enabled for purposes of website accessibility

1 Thing You Need to Know About the Flash Crash

By Chris Hill - Apr 24, 2013 at 6:41PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is computerized trading to blame for the flash crash this week?

The following video is from Wednesday's Motley Fool Money roundtable discussion with host Chris Hill and analysts Ron Gross, Charly Travers, and James Early.

There was some unexpected drama on Tuesday afternoon when the Dow suddenly dropped more than 150 points. The Twitter account belonging to the Associated Press was hacked and a fake tweet was posted about an attack on the White House. But the Dow recovered and closed the day in positive territory. Is the recent flash crash an indictment of computerized trading? What should individual investors do with the news? In this installment of Motley Fool Money, our analysts share some investing takeaways from the flash crash.

The relevant video segment can be found between 11:33 and 12:53.

For the full video of today's Motley Fool Money, click here.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$31,831.40 (-0.30%) $-97.22

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.