An Appraisal of Stock Market Circuit Breakers

Abstract

In October of 1987 stock market prices all over the world fell by staggering amounts. A financial panic spreading beyond stock markets did not occur and it would appear that any real economic consequences of the crash have, thus far, been small. A superficial reading of economic history suggests that things might have turned out a whole lot worse. It is this thought that makes an evaluation of various restrictions designed to limit stock market volatility ‐ so called circuit breakers ‐ timely.

Citation

Miles, D.K. (1990), "An Appraisal of Stock Market Circuit Breakers", Managerial Finance, Vol. 16 No. 6, pp. 25-32. https://doi.org/10.1108/eb013657