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Posts Tagged ‘liquidity risk’

ETFs: Explained and Exposed

In Advice, Criticism, Financial on July 14, 2011 at 1:13 PM

During the “flash crash” of 2010, the Dow dropped 1,000 points in a matter of hours because of a computer glitch. During this crunch, ETFs were impossible to sell unless you were willing to take a devastatingly low price. Why?

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