A ________ is a temporary halting of trading during a severe market decline.

Question

Quizplus · Accepted Answer

A circuit breaker is a temporary halting of trading during a severe market decline. This is triggered by a predetermined percentage decline in the market, and is intended to allow traders and investors time to regroup and reassess their positions. Price limits are levels set by exchanges to restrict the amount that a price can move in a given trading session. Collars are a trading strategy used to protect against large losses, while block trades involve the sale or purchase of a large number of shares at a single price by a single trader or entity. None of these define a temporary halt in trading during a market decline, which is specifically what a circuit breaker does.

A ________ Is a Temporary Halting of Trading During a Severe