Why not just let them drop to zero? Doesn’t this interfere with the market?
In: Economics
They halt trading to give people who aren’t as able to react to market news instantly a fair chance to react and not get crushed when the stock goes to zero. It also gives the market a chance to think and not just react to a dropping price.
> Doesn’t this interfere with the market?
It absolutely does interfere with the market. ***And that is not a bad thing.*** We interfere with markets all the time, by preventing food makers from selling food containing too much arsenic, or by requiring people who have non-public knowledge to schedule selling their stock in advance. Regulation is a good thing when used judiciously and appropriately – too much can stifle a market, but too little and people get taken advantage of.
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