A regulatory mechanism that temporarily halts trading in stock markets during significant index declines to prevent extreme volatility and panic sell-offs.
The Down Tick Rule, opposite to the Uptick Rule, allows short sales only if the last trade was at a higher price. It ensures stability in volatile markets and prevents excessive downward price pressure.
Market circuit breakers are automatic, market-wide halts triggered by significant drops in major stock market indices to prevent panic selling and maintain orderly market conditions.
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