On Thursday, $AMC Entertainment Holdings Inc(AMC.US)$ stock was halted 3 times on circuit breakers to the downside so far. What happened to AMC stock after gaining over 90% on Wednesday?
6 circuit breakers in 2 days for AMC
June 3, 2021 (Thursday)
June 2, 2021 (Wednesday)
Source: NasdaqTrader
What are circuit breakers?
Circuit breakers are measures implemented by exchanges when they consider price movements to be overly volatile. They can take the form of a trading suspension or limiting buying and selling of securities within a specific price range.
Purpose:
Circuit breakers can be triggered to curb panic-selling or manic-buying.
Applicable assets:
The circuit breaker system applies to both individual securities and market indexes. As a result, it applies to the options market as well -- if the stock market triggers a circuit breaker, the affected listed options markets will also halt trading.
How circuit breakers work in different markets
Jurisdictions and stock exchanges have their own rules for what circuit breakers entail, when do they kick in, and for how long they are in place.
U.S. Stock Market
Asian Stock Markets
Editor: Rachel
Source: CNBC, Investorpedia
Comment(4)
So what you are saying here is they only need to artificially drop the price by 20% to buy a days worth of extra time?
Yeah it's called naked short selling and ladder attacks. Nothing new.
Ok
let them lose their money! drop baby drrrrrrrrop
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