Tuesday, June 30, 2026
Science

Study links 'dark pool' trading to higher risk of sudden stock price crashes

More stock trading is moving away from traditional public stock exchanges and into places called "dark pools." These are private, electronic markets where investors buy and sell stocks without showing their orders to the public. Even as dark pools have grown increasingly popular, a recent study from...

Study links 'dark pool' trading to higher risk of sudden stock price crashes
Image: Phys.org
More stock trading is moving away from traditional public stock exchanges and into places called "dark pools." These are private, electronic markets where investors buy and sell stocks without showing their orders to the public. Even as dark pools have grown increasingly popular, a recent study from the University of Missouri suggests they may make public stock markets less transparent and increase the risk of sudden stock price crashes.

Originally published at Phys.org

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