Finance By Example (Archives): SEC Eases Stock Trading Curbs
Mandatory trading halts as a result of violent market movements. On the NYSE, circuit breakers kick in when the DJIA rises or falls by 10% of its average value in the previous month. Trading is halted for half an hour to allow market participants to regroup.
measures used by stock exchanges during large sell-offs; after market indices have fallen a certain percentage, the exchanges halt trading for a certain amount of time, with a goal of averting panic selling.
Mechanisms employed by stock exchanges to halt excessive declines in share prices. Introduced in the wake of the stock market crash of October 1987, circuit breakers seek to nullify the effect of programme trading in extending and worsening short-term market volatility.
Prevent electrical overload or shorting. The circuit breaker stops the flow of electricity along the circuit when an overload or short occurs. It can be reset manually by moving the circuit breaker lever OFF and then to the ON position once the source of overload has been corrected. Refer to the Electrical Systems section of this manual for more information.
Electrical devices which automatically open electrical circuits if they are overloaded.
A circuit breaker is a part of the electrical path. It operates much like a switch, except it opens automatically when a predetermined amount of electricity passes through it. Circuit breakers usually operate when moderate overloads occur for continuous periods by means of a thermally responsive element and when very high electrical values are reached by means of a magnetically responsive element. The magnetic element is not affected by temperature, but the thermal element will have different response times in different ambient temperatures.
A protective device which automatically opens an electrical circuit when it is overloaded
It is a mechanism by which Exchanges temporarily suspend the trading in a security when its prices are volatile and tend to breach the price band.
Measures used by some major stock and commodities exchanges to restrict trading temporarily when markets rise or fall too far, too fast. For example the New York Stock Exchange (NYSE) employs a circuit breaker that will halt trading if the Dow Jones Industrial Average declines by more than 10% in one day.
A system of trading halts and price limits on equities and derivative markets designed to provide a cooling-off period during large, intraday market movements. The first known use of the term circuit breaker in this context was in the Report of the Presidential Task Force on Market Mechanisms (January 1988), which recommended that circuit breakers be adopted following the market break of October 1987.
Procedures established to forestall the market from spiraling down. Circuit breakers will "kick-in" when the market has dropped by a specific amount within a certain period. At that time, the major stock and commodities exchanges will temporarily stop trading in stocks and stock index futures to give floor traders time to rebalance buy and sell orders. Circuit breakers were introduced in 1987 after Black Monday. The levels were revised when the market had another steep drop in October 1989. See: Black Monday; Floor Trader; Program Trading; Stock Exchange
A mechanism by which exchanges temporarily suspend trading in a security when its price is volatile and tends to breach the stipulated price band.
Protective measures implemented by the major stock exchanges to temporarily halt trading after the market has fallen by a pre-specified amount in a certain amount of time.
It measures instituted by the major stock and commodities exchanges to halt trading temporarily in stocks and stock index futures when the market has fallen by a specified amount in a specified period. Circuit breakers were instituted after Black Monday in 1987 and modified following another sharp market drop in October 1989. Their purpose is to prevent a market free fall by permitting a rebalancing of buy and sell orders.
Circuit breakers are procedures instituted by the major securities exchanges to halt trading temporarily when the market falls by a specified amount in a specified period of time. Circuit breakers were introduced following the precipitous market drop on October 19, 1987, known as Black Monday, when the Dow Jones Industrial Average plunged a record 508 points.
Circuit breakers are the switches found in the electrical service box of homes. Each circuit breaker protects a specific group of electric devices (outlets, overhead lights, appliances, etc.). If the devices draw too much power, the circuit breakers will shut-off ("trip") the power to all the devices to which it supplies electricity. Once the problem has been fixed, the circuit breaker can be "reset." When working on home automation projects that involve the home's wiring the respective circuit breakers should always be turned off manually to avoid electrocution. Caution: some wall boxes contain more than one switch or outlet, and these may receive their power from different circuit breakers. Always turn off all electric current to the wall box being worked on.