Circuit Breaker

Dictionary Says

Definition of 'Circuit Breaker'

Refers to any of the measures used by stock exchanges during large sell-offs to avert panic selling. Sometimes called a "collar."
Investopedia Says

Investopedia explains 'Circuit Breaker'

After an index has fallen a certain percentage, the exchange might activate trading halts or restrictions on program trading. For example, if the Dow Jones Industrial Average falls by 10%, the NYSE might halt market trading for one hour. There are other circuit breakers for 20% and 30% falls.

Articles Of Interest

  1. Connecting Crashes, Corrections And Capitulation

    Even though crashes, corrections and capitulations are bad news for investors holding the stock, there are still ways to profit.
  2. Market Problems? Blame Investors

    Investors are only human, and their irrational behavior can often move the market.
  3. The Greatest Market Crashes

    From a tulip craze to a dotcom bubble, read the cautionary tales of the stock market's greatest disasters.
  4. Giants of Finance: Charles Dow

    Find out how this financial visionary helped everyday people enter the world of finance.
  5. What You Need To Know About The Dow's 354-Point Plunge

    The Dow’s 354-point plunge Thursday was the worst drop since the presidential election. FOX Business Network stocks editor Elizabeth MacDonald weighs in below on what's behind the decline and ...
  6. How Now, Dow? What Moves The DJIA?

    Find out how this index tracks market movements and where it falls short.
  7. Understanding And Playing The Dow Jones Industrial Average

    Learn strategies for investing in this price-weighted index and how to interpret its movements.
  8. Sell In May – Yay Or Nay?

    Seasonal timing in the market, best personified by the adage, “Sell in May – Go away,” has long been the subject of debate among investors. The question remains: Is there anything to it?
  9. Which Mutual Fund Market Cap Suits You?

    Different funds invest in companies with different market caps. Find out which is right for you.
  10. How To Make A Winning Long-Term Stock Pick

    Discover the key elements of a good long-term investment and how to find them.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Network Effect

    A phenomenon whereby a good or service becomes more valuable when more people use it. The internet is a good example...
  2. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...
  3. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.
  4. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.
  5. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.
  6. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...
Trading Center