What Was the Essential Problem Behind the Flash Crash on May

question 49

Essay

What was the essential problem behind the flash crash on May 6, 2010 regarding algorithmic trading?

Evaluate the conditions under which minority views influence group decisions and their resultant societal implications.

Understand the concepts of idiosyncrasy credits and their relevance in social hierarchies and influence.

Examine the psychological and social mechanisms behind the bystander effect and its implications in emergency situations.

Understand the correlation between power and corruption.

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Definitions:

Spiritual Substance

An immaterial substance that is often associated with the divine or with the essence of consciousness.

Social Consensus

General agreement among members of a society or a group on basic values, beliefs, and norms.

Earth Moves

A term often related to the perceptible shifting or movement of the Earth’s surface due to natural phenomena like earthquakes.

Sun

The star at the center of our solar system, which is a nearly perfect sphere of hot plasma, generating energy and supporting life on Earth through its light and warmth.