instant noodle richest man

Chapter 1774 There are no fools on Wall Street

As we all know, the circuit breaker of the US stock market first occurred in 1997.

The second circuit breaker was in 2020.

The third circuit breaker is in 2020

The fourth circuit breaker is in 2020

The 5th circuit breaker is in 2020

Ahem, but what we want to talk about is not the collective circuit breaker of the entire US stock market, but the circuit breaker mechanism of individual stocks.

According to the rules of US stocks, once a stock rises and falls more than 10 in 5 minutes, the stock will automatically stop trading and the transaction will not resume until 5 minutes later.

This mechanism is good, so that crazy investors can calm down for 5 minutes and let them think clearly what they should do next.

So, Microsoft successfully triggered this circuit breaker mechanism, and the Microsoft stock price, which fell to $115, was directly suspended from trading and needed to wait 5 minutes before restarting the trading.

Then can circuit breaker definitely help the stock price of individual stocks stabilize?

It's OK most of the time, but in some special cases, it's very likely that the situation will be worse.

For example, now, after Microsoft's circuit breaker, many US stock institutions have just reacted and used these 5 minutes to hold a high-level meeting to discuss how to deal with it.

At this moment, Wall Street is very nervous. With the circuit breaker of Microsoft, a terrible fact has been revealed to everyone, that is, Microsoft's inflated heights are about to be broken, which is likely to further burst the entire Internet technology stock bubble, which will be a very terrible result.

These financial institutions must make correct decisions immediately and ensure their own interests.

"I think this is a coincidence caused by an accident!" In the conference room, a senior executive said, "I have asked people from the Information Department that a small failure in the Atlantic cable caused our and European networks to be interrupted and have not been repaired until now."

"Microsoft's collapse today is because of this small network failure that European investment institutions and retail investors are unable to buy our stocks as soon as possible, which has led to the unsuccessful purchase of the 16 billion yuan."

"But this fault is just a small fault, fully repairable, and it is very fast. It is expected to be repaired before 6:00 tonight!"

"So I think as long as the hot money in Europe can enter tomorrow, the stock market will stabilize again. There is no need for us to evacuate on a large scale just for a small accident."

"I believe everyone knows what consequences this will lead to. I'm afraid that all of us will not be able to escape by then!"

"No, I think today is not an accident. A short order of $16 billion has never happened before. How could so many short orders appear at the same time? I think that there are already institutions planning to escape early. They want to leave us and escape alone. Let us stay to stop them from the disaster!" Another executive stood up and retorted very simply.

"No, it's not like that. I have also checked the 16 billion. It is true that most of them are the courage of institutions, but these orders belong to more than 100 different institutions. It is impossible that an institution wants to escape early. It should be just because of Monday that so many orders happened to be together. Don't forget that the orders we sold in a few days are more than three times more than usual!" The executive who supported the calm explained quickly.

"Haha, then this is amazing. This is not because the family wants to escape early, but because more than a hundred companies want to escape early!" Another executive said coldly.

"..." Everyone in the conference room suddenly shuddered. If more than 100 institutions were planning to escape at the same time, it would be terrible.

"This is impossible, this is a coincidence!" At the beginning, the executive wanted to stick to his opinion, but the general manager, who had not spoken, said, "Enough, I announced that after the transaction is resumed, I will immediately sell all the Microsoft stocks in our hands at all costs!"

"What, General Manager, this is not possible. We will lose a lot. Things are more than that. We will cause the entire market to collapse!" said the executive loudly.

"I don't care whether our actions will lead to the consequences of your statement, and I don't know whether you two are arguing whether it is right or wrong, but one thing I know is that none of these more than 100 institutions is not an old fox."

"Even if only 20 of them ignore the overall situation and plan to escape, even if the remaining 80 continue to persist, the overall situation will collapse in an instant!"

"I know those guys so much that they will not only escape at the first time!" The general manager sighed quietly, "Since the overall situation is destined to collapse at this time, why don't we run ahead of time and stay to help others take over?"

"Yes!" The executive who had been shouting to take into account the overall situation before also shut up. The general manager was right. They could not expect everyone to take into account the overall situation. Then the only way to protect themselves is to escape before the overall situation collapses. The faster the loss is, the more it has nothing to do with them.

——————————

There are no fools on Wall Street, so no one can see that the overall situation is more than that, they can still stick to it.

But no one is unclear. If you stay at this time, you will likely take over the market.

These smart people really know other smart people too well, and these smart people know very smartly that once a group of smart people gather together, their cleverness will be added, but they will only add in the form of negative numbers.

Then, after the five-minute circuit breaker time passed, a situation that made all investors go crazy. In just 2 minutes, Microsoft's stock fell by 10 again, and within one day, it successfully triggered the second circuit breaker.

This time no one was illusory anymore. All institutions understood that the next one was a fast game. Whoever ran slower would die without a burial place.

As a result, all the American stock investors witnessed a historic moment. Microsoft, the world's largest stock, claimed to exceed a trillion dollars in market value, triggered a total of five circuit breakers in a day, and its stock price fell from $128 per stock to $75 per stock, with a total decline of 41. In one day, Microsoft's market value of more than $280 billion evaporated instantly.

Such a crazy plunge completely made everyone stupid. It is said that three people jumped down together that day, eliminating the troubles of this world.

No one can believe that Microsoft has ushered in such a tragic plunge, and it is only one day. God knows what bad results will Microsoft have in the future!

();

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like