Former President Donald Trump threatened the NASDAQ on Friday after the stock exchange briefly halted trading on Trump Media & Technology Group, which owns Truth Social.
Yeah, the guy who has no idea what a trading curb is, is a very stable business genius. Of course there is a very high chance that he is just straight up lying to rile the ignorant.
Limit Up-Limit Down Circuit Breaker (Single Stock Circuit Breaker) – The Limit Up-Limit Down circuit breaker (“LULD”) is a market volatility moderator designed to prevent large, sudden price moves in a stock. In particular, it prevents trades in individual securities from occurring outside of a specified price band. This price band is set at a percentage level above and below the average price of the stock over the immediately preceding five-minute trading period. If the stock’s price moves to the price band and does not move back within the price bands within 15 seconds, trading in the stock will pause for five minutes. These price bands are 5%, 10%, 20%, or the lesser of $.15 or 75%, depending on the price of the stock and whether the stock is designated as a Tier 1 or Tier 2 NMS stock. Tier 1 NMS stocks include all securities in the S&P 500, the Russell 1000 and select Exchange Traded Products. Tier 2 NMS stocks include all other NMS securities, except for rights and warrants, which are specifically excluded from coverage. The LULD applies during regular trading hours from 9:30 am ET – 4:00 pm ET. The LULD’s price bands double during the last 25 minutes of the regular trading day for (i) all Tier 1 NMS stocks and (ii) Tier 2 NMS stocks at or below $3.00.
I’m going to take a wild guess at one reason why preventing large, sudden price moves in a stock is a good thing: it prevents pump and dumps.
You can’t quickly pump a stock and then sell it off if there’s a control that stops the stock price from going way up in a hurry. And if you dump a stock, the price isn’t going to plummet instantly, offering some protection to your unwitting victims.
Yeah, the guy who has no idea what a trading curb is, is a very stable business genius. Of course there is a very high chance that he is just straight up lying to rile the ignorant.
https://www.investor.gov/introduction-investing/investing-basics/glossary/stock-market-circuit-breakers#:~:text=A cross-market trading halt,of the S%26P 500 Index.
https://www.nasdaqtrader.com/Trader.aspx?id=TradingHaltSearch
https://www.nasdaqtrader.com/trader.aspx?id=tradehaltcodes
https://www.nasdaqtrader.com/content/MarketRegulation/LULD_FAQ.pdf
I’m going to take a wild guess at one reason why preventing large, sudden price moves in a stock is a good thing: it prevents pump and dumps.
You can’t quickly pump a stock and then sell it off if there’s a control that stops the stock price from going way up in a hurry. And if you dump a stock, the price isn’t going to plummet instantly, offering some protection to your unwitting victims.
It’s hilarious. They were literally
propping up the value of his company by preventing a price implosion.It makes me wonder if his orders got cancelled.
Edit: my bad.
I failed to read the article. It was a price spike that got cut off. See below.