The circuit breakers"are designed to slow trading down for a few minutes, to give investors the ability to understand what's happening in the market, consume the information and make decisions based on market conditions," New York Stock Exchange President Stacey Cunningham"It's really a precautionary measure that we put in place so that the market can slow down for a minute," she said.of Oct. 19, 1987, when the Dow plunged 508 points, or 22%.
"There was this idea that if you stopped trading and gave a pause, then people would calm down and it might stabilize the markets," said Mason Gerety, professor emeritus at Northern Arizona University and a former research economist at the Securities and Exchange Commission.His research in the early 1990s found a trade-off to the temporary halt. Traders might sell off more quickly if they anticipate a circuit breaker kicking in.
"The fact that there's a circuit breaker might actually be more likely to get you to the circuit breaker. It's kind of almost like a gravitational pull," Gerety said. "People who do this for a living — I've never met one who felt like they needed to catch their breath," he said."They have good lungs. They are used to stress."
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Question: Even if there is a halt put on trading, wouldn't there still be an effect on the market that will just be pushed until the next trading day? You can't ultimately negate the negative impacts.
trumpbubble
JustSaying
This thing is going to blow over pretty quickly, and there will be bargains to be had stockmarketcrash
It’s good to know that when Wall Street needs to do some damage control, National Public Radio will do their bidding.
What a fragile system.
Cheap oil though. 🚗
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