Question

As a result of flash crashes, the SEC is trying circuit breakers that will halt trading for 5 minutes if large stocks' prices change by more than _____ in a 5-minute period. (We have seen this in action the last few weeks!)

Answer 1

10%

Step-by-step explanation:

As a result of flash crashes, the SEC is trying circuit breakers that will halt trading for 5 minutes if large stocks' prices change by more than 10% in a 5-minute period

Circuit breakers can also be imposed on single stocks as opposed to the whole market.

The now current rules, a trading halt on an individual security is placed into effect if there is a 10% change in value of a security that is a member of the S&P 500 Index,

Answer 2

10%

Step-by-step explanation:

Circuit breakers are regulatory measures used to temporarily halt trading of stocks exchange, they are in place to halt trading as a result of flash crashes.

As a result of flash crashes, the SEC is trying circuit breakers that will halt trading for 5 minutes if large stocks' prices change by more than 10% in a 5-minute period.