Monday, January 21, 2008

U.S. Stock Market Crash Prevention Mechanisms

Watching the European and Asian stock markets plunge this Monday and Tuesday (their time) prompted me to research what mechanisms are in place to prevent a market crash here in the U.S.

According to the following mechanisms are in place:

- The market will halt trading for an hour if the Dow drops 10% before 2 pm.
- Trading will halt for two hours if there is a 20% drop in the Dow before 2 pm.
- If the Dow drops 30%, trading is halted for the day.

DOW futures are pointing to a 5%+ drop tomorrow morning. This is coming at the heels of market drops around 7-10% overseas.


stock tips said...

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Thank you for sharing this.
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commodity tips said...

Lot of global tensions is going on at this time. Japan is expected to pull out its money from the global market as they want to revamp their country now. In current scenario anything can happen in the Share market Investors are advised not to panic and stay invested only safe
traders and Stock Tips investors should exit their long positions on every high and one can use every decline as an opportunity to enter market again.
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