SEC Report Sheds Light on Stock Market’s August ‘Flash Crash’

Washington — When fears of a slowdown in China sent U.S. stocks plummeting in late August, some of the market mechanisms meant to protect investors during times of volatility may have triggered even greater losses among exchange-traded funds, market regulators said in a report released last week. Some investors were surprised during the early minutes of stock trading on Aug. 24 when they noticed that many ETFs became worth much less...

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