It was during the middle (EST) of the trading day in 1963 when investors heard the news that President John F. Kennedy had been shot while riding in a motorcade in Dallas. Although initial reports were unclear – as confirmed reports of the President’s death were not initially broadcast – investors (predictably) began to panic and sell stocks.

The fears and uncertainties over the nation’s leadership also unnerved Wall Street traders, many of who were just leaving the exclusive lunch clubs and restaurants that inhabited the alleyways of downtown Manhattan at that time. Automobiles literally stopped in the streets and traders hustled back to trading desks, listening to the news over car radios along the way.

The sell off of stocks caused the NYSE to drop $13 Billion in value (or 2.8%) in a mere hour, an astounding sum-given the technological capabilities to even process trades at that time (and an argument for the importance of human market specialists on the NYSE floor).

To control panic selling NYSE officials desired to temporarily cease floor operations but it took time to do because the Board of the New York Stock Exchange had just finished a business luncheon that day and were already dispersed. It took over a half hour after news hit the Street to assemble a quorum, authorized to vote on closing the Exchange down.

news@doubledownmedia.com

11/19/07