Question

Unlike the market for shirts at the local department store, the market for securities can experience significant upswings and downswings in values in the same day. Program trading allows for thousands of trades to occur simultaneously. To prevent large, sudden drops in the value of securities markets, electronic systems rely on ________ to temporarily close program trading.

Answer 1

circuit breakers

Step-by-step explanation:

To avoid much upside or downside movements of stock, securities market generally incorporated the

circuit breakers to monitor the securities market.

When circuit breakers are established for partciular stock, the stock movement temporarily stoped once it touches the Upside or Downside limit.