The Emergence of Critical Stocks in Market Crash

  title={The Emergence of Critical Stocks in Market Crash},
  author={Shan Lu and Jichang Zhao and Huiwen Wang},
  booktitle={Frontiers in Physics},
In complex systems like financial market, risk tolerance of individuals is crucial for system resilience. The single-security price limit, designed as risk tolerance to protect investors by avoiding sharp price fluctuation, is blamed for feeding market panic in times of crash. The relationship between the critical market confidence which stabilizes the whole system and the price limit is therefore an important aspect of system resilience. Using a simplified dynamic model on networks of… 

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