In this video, you will be introduced to circuit breakers in stock market. #circuitbreaker #stockmarket #wallstreetmojo #tradinghalt #s&p500 Chapters: 00:00 – Introduction 00:54 – What is a circuit breaker? 01:41 – History 02:34 – Why is a circuit breaker needed? 03:27 – Conclusion What is a circuit breaker? A circuit breaker in the stock market halts trading temporarily in case the price falls too much. It’s to prevent panic selling stocks within a very short period, say within minutes. So circuit breakers stop trading for a specified period so that accurate information can flow into the market within that time so that speculation stops. History In 1987, the Dow Jones Industrial Average, a market index of the US stock market, crashed almost 22% in two trading sessions, followed by a complete market crash. Then in 2013, the SEC introduced new rules for market-wide circuit breakers. (Explained in detail in the …
