SEC probes stock-market plunge

stock tradingHeads of the major stock exchanges were summoned to Washington by federal regulators to try to help figure out what caused last week’s computerized sell-off the shot the Dow Jones Industrial Average down 1,000 points in a matter of minutes.  Law Professor Elizabeth Nowicki, a former Securities and Exchange Commission attorney and Wall Street lawyer, said the incident was similar to the ‘Black Monday’ crash in 1987, which the markets survived.

“The vehement suggestion that the SEC should adopt forthwith market circuit breakers for all markets is premature, given that liquidity is needed to some degree to help markets self-correct, even if short-term volatility is unnerving.”

Contact Elizabeth Nowicki, 518-867-5355, enowicki@bu.edu

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