Stock market volatility due to small investors?
（Is the volatility in the stock market due to small investors who buy and sell frequently?）
Answer ：
I expect that it is more related to the recent change from manual, personal stock investing to computerized stock investing, which happens in milliseconds and thus can create a chain reaction as a small drop causes automatic computerized selling of stock, which can cause more of a drop, triggering more computerized selling, etc etc.
Posted: August 8th, 2010 under US Stock Market.
Tags: Stock market