Posted by Ivy Schmerken
[Feb. 27th's] steep stock market plunge of 416 points sent a warning of how vulnerable the market structure is to systems glitches and data backlogs when there are unexpected volume surges and rapid sell-offs in an electronic trading environment. As most of us know, problems began around 2 p.m. when the Dow Jones Industrial Average was already down 200 points. ...
I was in the car at 2:30 p.m. when CBS Radio reported that the market was crashing and the Dow was down 250 points. The heavy sell-off in U.S. stocks caused a 70-minute lag in correctly calculating the value of the Dow Jones Industrial Average, according to Dow Jones Indexes.
Posted by Penny Crosman
After we wrote about Saxo Bank's opening an office in the virtual world Second Life, 24-year-old Australian entrepreneur Luke Connell contacted us to tell us about the securities exchange he opened recently in Second Life called World Stock Exchange. This simulated stock exchange opened on March 5 and trading volume has exceeded $23 million in virtual dollars (approximately $90,000 U.S. dollars). Connell, whose Second Life alter ego is called LukeConnell Vandeverre, explained how and why his investment firm, Hope Capital, and others are doing business on the computer-animated Second Life site, and how people can make or lose real money by investing in a simulated stock exchange.
Reader Comment, Posted by Gia Tyne
There is no oversight, no regulation, no accounting, bookkeeping or audits -- in other words, none of the real-world protection. A fool and their money ...
Reader Comment, Posted by Danielz Shackle
Hey, its a fun game. Think about it: You go to a movie and spend $10, that's about 3,000 game dollars. Enough to buy clothes, car, etc. in the game. ... For most of the [virtual] investors, they are risking pennies in real-life money since you can buy 285-300 game dollars for each real-life dollar. While a few people will use this as a way to make large amounts of real-world money, most people are doing it as a fun way to meet new people and play with the stock market without risking serious real money.