In this video, you will learn about stock halt, its rules, and how it is triggered.
#stockhalt #stockmarket #wallstreetmojo #stockexchange #regulator
Chapters:
00:00 – Introduction
00:35 – What is the stock halt?
01:29 – Rules
02:17 – Triggers of stock halt
02:48 – Conclusion
What is the stock halt?
A stock halt is a scenario where the exchange halts trading in a particular stock for some time.
It may be done when a regulatory action is imposed, important news is being anticipated, or a particular stock is just being bought or sold excessively.
(Explained in detail in the video)
Rules
When a stock is halted for trading, it is coded with an identification number like T1, T2, T5, H10, etc.
When the situation arises for halting trading in a particular stock, the exchange announces a halt to all brokers.
Triggers of stock halt
If the stock price fluctuates up and down due to high volatility, then the exchange will either halt the trading, or the circuit breakers will be activated.
Trading halts have been put into place so that a select group of individuals with significant capital does not manipulate prices to their whims and fancies.
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