How Far Down Until Trading Halts?
We're not there yet, but today's precipitous drop on the Dow Jones industrial average -- more than 700 points or 7 percent -- prompts an interesting question. Just how bad would it have to get for the New York Stock Exchange to halt trading?
Well, it depends. According to the New York Stock Exchange Web site, 10 percent decline in the Dow would prompt an hour-long halt in trading if it happened before 2 p.m. and a 30-minute stop if it happened between 2 p.m. and 2:30. Trading would not halt the 10 percent drop happened after 2:30 p.m.
A 20 percent decline-- or 2,200 point drop-- on the Dow would prompt a two-hour halt if it happened before 1 p.m. and an hour-long breather if it happened between 1 p.m. and 2 p.m. Such a drop after 2 p.m. would lead to the market closing for the day.
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