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A stock market crash

Market regulators are accusing a British
national of almost single-handedly causing a
“Flash Crash” to American stock markets in
2010. During the incident, the Dow Jones
Industrial Average dropped about 9%, and lost
more than $1 trillion dollars in minutes.
Fortunately, stocks rebounded relatively fast
after the shock (O), but we wanted to know,
what does it take to crash a stock market?
Well, there have been countless financial
“crashes” throughout history. They even go
back to the 1600s when modern stock
exchanges were first evolving within the
European trade economies. A crash represents
a steep, sudden decline in the value of market
prices, and they can often lead to an economic
The most devastating crashes are usually the
result of an overly-inflated market, also
known as a “bubble”. In short, the value of a
stock is dependent on what people think it will

be worth in the future. When the economy is
good, or there are other motivating factors,
investors expect their stocks to rise in price,
which in turn does increase their value.
Investment bubbles occur when prices of
market shares are driven upwards past their
real value. According to some market theorists,
a bubble is encouraged by a “herd mentality”,
where people first jump on the bandwagon of
a profitable stock, and then, when the bubble
bursts, they engage in panic-selling. The most
famous example of this was during the 1929
American Stock Market Crash. In the years
after World War I, optimism in the economy
inspired many to take on risky loans, and
invest in stocks. But when the economy slowed
down, the public began to doubt the market’s
longevity, and started selling their shares - at
first slowly, and then in droves. Market prices
went into freefall, and with no fail-safe rules,
the market inevitably crashed. Stock markets
can also be “spooked” into a decline or a crash
following catastrophic (O) events. For
example, San Francisco’s massive 1906
earthquake is thought to have played an
integral role in the financial panic of 1907.
During that time, the market sank to about 50%
of the previous year’s valuation. Additionally, In
2001, after the September 11th terrorist
attacks, the stock markets were closed for
almost a week. In the first five days back, the
markets faced a loss of about $1.4 trillion
dollars. The digital era has also introduced new
threats to the stock market in the form of “high
frequency trading”. HFT is when thousands of

Single-handleded: xử lý độc lập (oxford)
Accuse sb of st
Black market
Vietnamese national: kiều bào

On the verge of economic collapse
Foreign exchange market
Join sotck company
Join venture company: công ty liên doanh
IPO: initial public offering:phát hành lần
Incident: sự kiện
By accident/ by chance: tình cờ gặp
The gufl of turkin incident: sự kiện vịnh bắc
Cochinchina: nam kỳ
Indochina: đông dương
Rebound: bật lại
On the rebound:
Relative close: họ hàng gần
I am in my 20s
Depress: làm cho căng thẳng
Crisis: khủng hoảng
Devastate: tàn phá
Overflow: nước tràn
The balloon... (heli)
The life jacket failed to inflate
The theory of everything: thuyết vạn vật
Herd mentality: tâm lý bầy đàn
Herb: thảo mộc
Why follow the herd?
Burst: nổ (O)
Panic (v): hoảng loạn (O)
Make an example/ follow an example
The teacher make example of T by the
suspensing bridge (đình chỉ)
During= when
Optimistic about: lạc quan về cái gì ><
Over optimistic: lạc quan quá mức
Negotiating table: bàn đàm phán
Take risk: hãy mạo hiểm đi + Ving
No doubt: không còn nghi ngờ
I have been to the mountain top.
In slove: lũ lượt
Go into freefall: rơi tự do

Flash crash
-Thị trường bong
-Sau những thảm
-HFT: giao dịch
công nghệ cao
thường xuyên

Great Depression

trades are carried out by computers in
fractions of a second. The swiftness of
computer programs at buying and selling puts
traditional traders at a disadvantage. Also, HFT
creates potential volatility in the stock market.
Computer programs that are designed to
automatically respond to price points can
trigger mass selling before anyone has time to
react. This was said to have contributed to the
2010 Flash Crash, after a large enough
downtick in stocks caused many HFT programs
to further withdraw, leading to a drastic crash.
After that event, government regulators
imposed new laws, called “circuit breakers”,
which temporarily “pause” trading if a stock falls
by a certain percentage, usually 10% or more,
within a short time. These safeguards give
traders breathing room to reexamine their
options instead of panicking and selling
everything before the stock bottoms out. The
Securities and Exchange Commission works
hard to regulate the wild swings of the stock
market. But for the modern era, stock markets
remains more volatile, and susceptible to
crashes than one might ever think. Investing is
a pretty risky thing to do, but sometimes big
risks can have even bigger rewards.

Broker: môi giới chứng khoán
Breaker: phanh
Dòng xoay chiều/ dòng ngược chiều
Machanism: cơ chế/ system
Edible: có thể ăn được
Spook: dọa ma
Ground breaking ceremony: lễ độngthổ
Integration into: hội nhập vào
All out: tổng lực
Heart attack: đau tim
Worth +$: giá trị
Ngưỡng cửa
Stronghold: thành trì
Threat to: nguy hại với cái gì
The golden era of...
Transaction: giao dịch
Take full advantage of
Volatile: biến động
A highly volatile personality:
Trigger = set off: gây ra
Went off: kêu
It is said that (Không phải lùi thì) =People
said that (lùi thì)
Impose on: áp đặt cái gì
Lift embargo: dỡ bỏ lệnh cấm vận
Take a deep breath:
Bottom out: chạm đáy
The Security Council of United Nation: hội
đồng bảo an liên hợp quốc
Swing: dao động
Susceptible: nhạy cảm

Envolve: (v) mở ra, rút ra
Steep = slope: dốc (n)

Overly-inflated market: thị trường bị thổi
phồng quá mức

Herd mentality: tâm lý bầy đàn
Tham gia theo số đông vào lĩnh vực nào đó
(dc xem là sẽ thành công)

Take on risky loans

Không có biện pháp an toàn, tránh rủi ro
Catastrophic: thảm họa

Fraction: phân số, phần nhỏ

Volatility: sự dễ biến động
Trigger: gây ra


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