OT MD11 crashes in Hong Konggreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread |
I'm listing the link to this article about the airplane crash not because I believe the crash is in any way y2k-related but because of this small section of the article:"In Taipei shares of China Airlines, Taiwan's top carrier, plunged in early morning trade, falling the daily seven percent volatility limit at T$21.3. Analysts said the crash would hurt the airline just as it was recovering from a 1998 crash in Taiwan."
Does anyone know if all/most stock markets have a "volatility limit?"
-- Rachel Gibson (rgibson@hotmail.com), August 22, 1999
"Analysts said the crash would hurt the airline just as it was recovering from a 1998 crash in Taiwan."Not to mention what it might have done to the passengers. (Or does that count?)
-- Mara Wayne (MaraWAyne@aol.com), August 23, 1999.
Mara, Some of those passengers found themselves hanging upside-down by their seatbelts for three hours. They might refuse to fly again. That would hurt the bottom line, too.
-- Rachel Gibson (rgibson@hotmail.com), August 23, 1999.
Rachel,US stock (equity) markets do not appear to have "volatility limits" on individual equities. The NYSE has some kinds of limits based on swings in some index, I think the DJIA.
US futures markets appear to have limits on swings in individual commodity contracts, but I do not know the details.
Jerry
-- Jerry B (skeptic76@erols.com), August 23, 1999.
Thanks, Jerry. So, in the event of a sudden, sharp downturn, the only likely way to impede it would be to shut-down trading altogether, yes?
-- Rachel Gibson (rgibson@hotmail.com), August 23, 1999.