The Purpose of the SEC's Circuit Breakers Rule Is to

question 275

Multiple Choice

The purpose of the SEC's circuit breakers rule is to

• A) prevent market disruption caused by a communication malfunction.
• B) halt trading for a short time following a dramatic drop in stock prices.
• C) allow floor traders to specialize in trading the securities of specific industries.
• D) prevent individuals from profiting from information not available to the general public.

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Definitions:

Output

In economics, output refers to the total amount of goods and services produced by an economic system or entity.

Imperfect Competitor

An entity in a market that cannot dictate the prices of its goods or services due to the presence of competition, contrary to a monopoly.

Regional

Pertaining to or characteristic of a specific geographic area or division, often considered in terms of economic, political, or cultural distinctions.

Local Levels

Pertains to activities, governance, or administration executed at a community, town, or city scale, focusing on the immediate geographical area.