Following the stock market crash, investors and financial community professionals began to fear a repeat performance, and that fear threatened to materialize in October , when the market began an extended slide and flirted with disaster.

Economists and regulators have identified many causes of such slides and devised preventive measures to prevent another stock market collapse. As 13 million shares traded on Black Thursday — October 24, — the stock ticker failed to keep up with the free fall.

The resultant crash was attributed to inflated stock prices and marginal buying, with traders contributing only 10 percent of their own cash and borrowing the rest. To prevent economic collapse, President Herbert Hoover shepherded the enactment of the Smoot-Hawley Tariff to encourage overseas sales, but even that measure backfired.

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In , the Securities and Exchange Commission was created to restore the public's trust in capital markets and to oversee the conduct of those markets. Among its many other duties, the SEC attempts to prevent market meltdowns by requiring transparency in the financial instruments being traded in the financial markets and also by regulating brokerage firms and self-regulatory organizations, including the major stock exchanges.

It prohibits certain types of conduct, such as insider trading, and enforces laws that govern the financial industry.

After the stock market crash, trading days were cut back from six to five as one way to prevent another collapse. High frequency trading has been identified as a potential risk to market stability. At the heart of the matter is an industry push to lower trading costs while speeding up the process of trading.

The brief pause in trading to give parties a chance to regroup backfired when it was used, as the short break triggered erratic activity on other exchanges. Nevertheless, it remains in place. This software keeps up with algorithmic trading, commonplace within investment firms relying on technology to move trades along safely and briskly. Risk Firewall can stop automatic trading if rogue trading patterns or unidentified activities threaten to crash the market.

Based in Chicago, Gail Cohen has been a professional writer for more than 30 years. She has authored and co-authored 14 books and penned hundreds of articles in consumer and trade publications, including the Illinois-based "Daily Herald" newspaper. Her newest book, "The Christmas Quilt," was published in December Each week, Zack's e-newsletter will address topics such as retirement, savings, loans, mortgages, tax and investment strategies, and more.

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Skip to main content. What Measures Were Put in Place to Prevent the Stock Market Crash From Happening Again?

More Articles Where to Put Investments Before a Crash How Do I Read a Stock Index? Government Regulations on the Stock Market How Does a Stock Market Crash Occur? The Crash As 13 million shares traded on Black Thursday — October 24, — the stock ticker failed to keep up with the free fall.

The Securities and Exchange Commission In , the Securities and Exchange Commission was created to restore the public's trust in capital markets and to oversee the conduct of those markets.

Trading Time After the stock market crash, trading days were cut back from six to five as one way to prevent another collapse. Circuit Breaker High frequency trading has been identified as a potential risk to market stability. References 4 The Money Alert: The Stock Market Crash of Time: What Can Be Done to Prevent Another Stock Market Dive?

Technology Could Help Prevent Stock Market Crashes and Abuse The Wall Street Journal: Singapore Takes the Lunch Lead. News and World Report; Money; Capital Commerce; Stock Market Crash -- How to Stop It Daily Mail: So What Can We Learn From the Crash of to Avoid a 21st Century Great Depression? About the Author Based in Chicago, Gail Cohen has been a professional writer for more than 30 years.

Eleven Ways to Avoid a Stock Market Crash - 24/7 Wall St.

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